Question 1
This question has two parts. First, answer Part A. Then, answer Part B.
Part A
INVESTING Kimiyo is planning to invest money in a savings account. She is comparing the interest rates
Bank A offers a savings account with 2.1% interest compounded annually. Bank B offers a savings account
interest rate of 0.8%.
a. Write a function to represent the balance A of Kimiyo's account after t years through Bank A, assuming
write an equivalent function that represents quarterly compounding. Round to the nearest ten-thousandth
compounded annually: A (t) =
compounded quarterly: A (t) =
Part B
b. Which is the better plan? Explain.