Business, 28.02.2021 17:30, garciagang0630

First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $55,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years?

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answered: cherri22

you would earn $11,601.16 more money from your Second City Bank account at the end of 8 years.

Explanation:

This can be determined using the following 3 steps:

Step 1: Calculation of Balance in First City Bank account after 8 years

This can be calculated as follows:

Simple interest for 8 years = Deposit * First City Bank simple interest rate * Number of years = $55,000 * 8% * 8 = $35,200

Balance in the First City Bank account after 8 years = Deposit + Simple interest for 8 years = $55,000 + $35,200 = $90,200

Step 2: Calculation of Balance in Second City Bank account after 8 years

This can be calculated using the following formula:

Future value = Balance in Second City Bank account after 8 years = Principal * (1 + r)^n (1)

Where:

Principal = Deposit = $55,000

r = interest rate = 8%, or 0.08

n = number of years

Substituting the values into equation (1), we have:

Balance in Second City Bank account after 8 years = $55,000 * (1 + 0.08)^8 = $101,801.16

Step 3: Calculation of excess of interest earned from Second City Bank account over interest earned from First City Bank account

This can be calculated as follows:

Excess interest earned = Balance in Second City Bank account after 8 years - Balance in the First City Bank account after 8 years = $101,801.16 - $90,200 = 11,601.16

Therefore, you would earn $11,601.16 more money from your Second City Bank account at the end of 8 years.

answered: Guest

(i know i'm late but the answer's "things about yourself" because you want to list things you're capable of, why you want to open up the business, the amount of money you're putting into it,etc.) i'm guessing you take online school small business, the answers to the quizzes are all over quizlet. just look up your question and type quizlet after it and it'll pop up.

answered: Guest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

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First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City...