Your answer: Question 12 (CHAPTER 5) Bank #1 offers a 4% simple interest to all its depositors. Bank #2 offers also a 4% Interest, but it has annual compounding. If you deposit your money for a number of years, which of these two banks would you choose? (a) Bank #1 (b) Bank #2 (c) It doesn't matter Now, why is that? (a) You would earn a higher amount of interest over the years (b) You would earn a lower amount of interest over the years (c) You would earn the same amount of interest over the years Now, let's calculatel (Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to TWO decimal places: for example, $10,000.23.) So, if you deposit $6,000 today, and leave it in the account for 20 years, how much will you have at the end of 20 years in Bank #1? (a) $9,720.00 (b) $10,800.00 (c) $11,832.06 (d) $13,146.74 If, instead, you choose Bank #2, how much will you have in 20 years? (a) $9,720.00 (b) $10,800.00 (c) $11,832.06 (d) $13,146.74