Michelle wants to borrow $4,500. bank a will lend michelle the money at a simple annual interest rate of 9% for 6 years. bank b will lend her the money at 11% for 4 years. which bank would charge michelle the least amount of interest? explain.

Bank A:

A = 4500 (1 + (0.09 * 6)) = 6930

A = $ 6,930.00

The total amount accrued, principal plus interest,

from simple interest on a principal of $ 4,500.00

at a rate of 9% per year.

for 6 years is $ 6,930.00.

Bank B:

A = 4500 (1 + (0.11 * 4)) = 6480

A = $ 6,480.00

The total amount accrued, principal plus interest,

from simple interest on a principal of $ 4,500.00

at a rate of 11% per year

for 4 years is $ 6,480.00.

So bank B would charge the least amount of interest.