$1$

Problem $5-1$ Simple Interest versus Compound Interest $[$LO$1]$

$8\mathrm{.}33$ points

$\backslash$table$[[$eBook$],[$Hint$],[$Print$]]$

First City Bank pays $7$ percent simple interest on its savings account balances, whereas Second City Bank pays $7$ percent interest compounded annually. If you made a deposit of $$56,000$ in each bank, how much more money would you earn from your Second City Bank account at the end of $9$ years?

eBook

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

Hint

$$

References$1$

Problem $5-1$ Simple Interest versus Compound Interest $[$LO$1]$

$8\mathrm{.}33$ points

$\backslash$table$[[$eBook$],[$Hint$],[$Print$]]$

First City Bank pays $7$ percent simple interest on its savings account balances, whereas Second City Bank pays $7$ percent interest compounded annually. If you made a deposit of $$56,000$ in each bank, how much more money would you earn from your Second City Bank account at the end of $9$ years?

eBook

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

Hint

$$

References