Question

Continental Bank advertnes capital savings 59% compounded annually while TD Canada Trust offers premium savings of 67% compounded monthly Suppose you have $1000 to invest for two years Which deposit will cam more interest? What is the difference in the amount of interest? The Continental Bank savings account will earn more interest The difference is s Round the finalwer to the nearest contended. Round all intermediate values to six decimal places as needed)

Answer 1

Soli- Given data od And TD Canada trust offers premium saring at 5.7% 1000 Amount (D- time it) 2 yrs ccording 5.9%. Compounded annually V: 5.9%. Or No buna torta monthly. pop compounded ovog premium saving = 5.4% Compoundy Monthly FROG Capital savings : 59% Corinpounded annually UN. to Question Continental Bank odvertises Capital Saving at 0.059 As compounded annually 1 = 1 and - , , , , .: 22 577) -0.057 m=12'17: Compounded monthly that No e contro AS we know by Se extinto furnis 7 hi amount is given A = P[1+ ) "0 for continental Bank? que becomes cp.ost A :-P ?[1+ Jhit (2) A, E 1000[17 0.059 - 1000 (1.05972 · 1000x 1.12148) A =$1121.48) Intrest, I - AP 1121.481 - 1000 9, $121.481

for DD Conado trust - solare pengene low by 1000 [!!! priver rolig rolling of pribroj a A = P( 14 ) neatroonan 12.04) 1000 C1 + 0.057 1.00495) 224ng A $1120.45 Intrest P PA, p. 1120:45+1000 2$120.45 Coo that (a) from egun & we find bo Bewire 2, P2 ine thon botron det Intrest cazred on the deposit of continental Bant is more the interest eagued on the deposit of ID Canada trust Continental Bank saving account will earn more intrest ie$ 12148 => The 6 Dittgence in the amount of interest is givenas difference -3, -12 eetting 512148-120.45 Dittgence $1.03 Si Xoc Treo.nl oval