First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $55,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years?

you would earn $11,601.16 more money from your Second City Bank account at the end of 8 years.

Explanation:

This can be determined using the following 3 steps:

Step 1: Calculation of Balance in First City Bank account after 8 years

This can be calculated as follows:

Simple interest for 8 years = Deposit * First City Bank simple interest rate * Number of years = $55,000 * 8% * 8 = $35,200

Balance in the First City Bank account after 8 years = Deposit + Simple interest for 8 years = $55,000 + $35,200 = $90,200

Step 2: Calculation of Balance in Second City Bank account after 8 years

This can be calculated using the following formula:

Future value = Balance in Second City Bank account after 8 years = Principal * (1 + r)^n (1)

Where:

Principal = Deposit = $55,000

r = interest rate = 8%, or 0.08

n = number of years

Substituting the values into equation (1), we have:

Balance in Second City Bank account after 8 years = $55,000 * (1 + 0.08)^8 = $101,801.16

Step 3: Calculation of excess of interest earned from Second City Bank account over interest earned from First City Bank account

This can be calculated as follows:

Excess interest earned = Balance in Second City Bank account after 8 years - Balance in the First City Bank account after 8 years = $101,801.16 - $90,200 = 11,601.16

Therefore, you would earn $11,601.16 more money from your Second City Bank account at the end of 8 years.

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number