Algebra I.3.A.04 - Why Do Banks Pay YOU to Provide Their Services? – Exit Ticket

Last updated almost 4 years ago

3 questions

A youth group has a yard sale to raise money for a charity.The group earns $800 but decides to put its money in the bank for a while. Calculate the amount of money the group will have if, Cool Bank pays simple interest at a rate of 4%, and the youth group leaves the money in for 3 years.

A youth group has a yard sale to raise money for a charity.The group earns $800 but decides to put its money in the bank for a while. Calculate the amount of money the group will have if, Hot Bank pays an interest rate of 3% compounded annually, and the youth group leaves the money in for 5 years.

If the youth group needs the money quickly, which is the better choice?Why?

From EngageNY.org of the New York State Education Department. High School 1 Algebra, Module 3, Topic A, Lesson 4. Internet. Available from https://www.engageny.org/resource/algebra-i-module...; accessed 27/Oct/2015.