Mrs. Maldonado has $3,000 she wants to invest for the next 4 years. Her credit union offers a 5.96% interest rate compounded yearly, while a new bank will pay a 7.27% annual simple interest on her investment. Assume Mrs. Maldonado makes no additional deposits or withdrawals over the 4-year period.
Step 2: Use the correct formula to calculate the interest earned for the offer at the bank.