Question

rich was trying to decide at what bank to invest his $5000 the bank of pythagorus offers him a 4.75% rate for 3 years whereas einsteins bank will give him a 2% rate for 7 years. determine which bank will provide the most interest at the end of their offers, assuming no money is withdrawn from the bank justify your answer with work using l= prt

Answer 1

The Bank of Pythagoras will provide the most interest at the end of their offer, with $712.50, compared to Einstein's bank with $700.

Step-by-step explanation:

To determine which bank will provide the most interest at the end of their offers, we need to calculate the amount of interest earned from each bank offer. We can use the formula for simple interest, which is given by L = PRT.

Bank of Pythagoras offers a rate of 4.75% for 3 years. Plug in the values to calculate the interest:

L = 5000 * 0.0475 * 3 = $712.50

Einstein's bank offers a rate of 2% for 7 years. Plug in the values to calculate the interest:

L = 5000 * 0.02 * 7 = $700

Therefore, the Bank of Pythagoras will provide the most interest at the end of their offers, with $712.50, compared to Einstein's bank with $700.