Question

First city bank pays 5 percent simple interest

Answer 1

Answer: $2,252

Step-by-step explanation:

First City Bank amount after 12 years;

= Amount + (Amount rate Number of years)

= 11,500+ (11,500 * 5% *12)

= $18,400

Second City Bank using Compound Interest

= 11,500 (1+5%) 12

= $20,652

Difference = 20,652-18,400)

= $2,252