Two banks offer compound intereston your investment while you deposit with them. Bank A calculates compound interest annuallyand Bank B calculates half-yearly. Which bank do you chooseto invest and why? Justifyyour answer with simple example.

Bank B because the more often you compound interest, the more interest you earn.

Step-by-step explanation:

Bank A compounds the interest once a year.

Bank B compounds the interest twice a year.

Let's create an example of two investments of the same amount of money, the same interest rate, and the same time. The only difference will be the number of times the interest is compounded per year.

Compound interest formula:

where

A = future value

P = principal invested

r = interest rate

t = number of years

n = number of times interested is compounded in 1 year

Example:

P = $1000

r = 5%

t = 5 years

Bank A: n = 1

Bank B: n = 2

Bank A:

Bank B:

Bank A's investment is worth $1276.28 after 5 years, but Bank B's investment is worth $1280.08 after the same 5 years. Compounding twice per year instead of only once per year earns more interest.

hello!

to begin with, we're given that on earth, a rock weighs 20 pounds, and while on jupiter, that same rock weighs 42 pounds. now, we're trying to find the weight of a rock that weighs 10.5 pounds on earth, on jupiter.

to solve this, first, set up a proportion, cross-multiply, and solve it algebraically.

setting up the proportion is the hardest and the most confusing part of the problem, but it's simple.

if on earth, the rock weighs 20 lbs, and on jupiter it weighs 42 lbs, our first part of our proportion is 20/42 lbs. the second part has to be equal to each other. this means that 10.5 has to be on the numerator of the fraction, and x, the value we're trying to find, has to be on the denominator. remember that the rock weighs 10.5 lbs on earth, and we're trying to find the weight of it on jupiter (which is x).

20/42 = 10.5/x

next, you would cross-multiply.

20x = 42(10.5)

20x = 441

now, solve it algebraically by using division.

x = 22.05 lbs

this can be rounded to 22.1 lbs.

therefore, the weight of the rock on jupiter is 22.1 lbs, the fourth choice.