Question

I REALLY NEED HELP!

1. Checking account earnings at Long's Bank are expressed by the equation, I = -0.06x + 8.3


The earnings at Fellow's Bank are modeled by I = -0.02x+6.6


In both cases, x is the number of checks written.


For what range of checks will a checking account at Long's Bank generate more earnings income than one at Fellow's Bank? Show your work or explain how you got your answer.


2. A bank advertises an APR of 5.5% on personal loans. How much more is the APY when the rate is compounded monthly as compared to when it's compounded quarterly? Explain your answer.

Answer 1

Earning at Long's Bank are expressed by the equation, I = -0.06 x + 8.3

Earnings at Fellow's Bank are modeled by I = -0.02 x+6.6

Where,x is the number of checks written.

now, we have to find that , at what range of checks will a checking account at Long's Bank generate more earnings income than one at Fellow's Bank.

-0.06 x +8.3 > -0.02 x +6.6

-0.02 x+0.06 x < 8.3 - 6.6

0.04 x < 1.7

Dividing both sides by , 0.04, we get

x< 42.5

So, x ∈[0,42], which is number of checks written.

2. APR on personal Loans =5.5%

Value of APR when compounded monthly

`=(5.5)/(12)=0.4583`

=0.46 (approx)

Value of APR when compounded Quarterly

`=(5.5)/(3)=1.833`

= 1.84 (approx)

Difference between Rate , when the APR rate is compounded monthly as compared to when it's compounded quarterly

=1.84 - 0.46

=1.38 (approx)

Quarterly APR is 1.38 value more than Monthly APR, when the rate of Yearly APR is 5.5%.