Lia has $1,000 to put in a savings account. She is choosing between two Banks. Bank A offers 5% compounded quarterly & Bank B offers 5.1% compounded semi-annually. If Lia plans on keeping her money in a savings account for a year, which bank would pay her more in interest, and by how much? A. Bank A by 70.5 cents B. Bank B by 33 cents C. Bank B by 70.5 cents D. Bank A by 33 cents

Question

Mathematics

Rosa Owens

7 February, 06:01

Lia has $1,000 to put in a savings account. She is choosing between two Banks. Bank A offers 5% compounded quarterly & Bank B offers 5.1% compounded semi-annually. If Lia plans on keeping her money in a savings account for a year, which bank would pay her more in interest, and by how much? A. Bank A by 70.5 cents B. Bank B by 33 cents C. Bank B by 70.5 cents D. Bank A by 33 cents

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Answers (1)

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Armani Beard · Answer 1

Answer: D

Step-by-step explanation:

We can even make sense of this comparison in the context: the value of the dimes, as a fraction of the value of all the coins in the piggy bank, is greater than the number of dimes, as a fraction of all the coins in the piggy bank.

This task could be used for assessment but it is mainly designed to provide a rich context for students to work on their understanding of fractions.