Homework Answers
Ans $ 128.89
| FV = | Future Value |
| PV = | Present Value |
| r = | rate of interest |
| n= | no of period |
| BANK B | |
| FV = | PV (1 + r )n |
| FV = | 1000*(1+5%)^10 |
| FV = | 1628.89 |
| Bank A | |
| FV = | PV + PV * Rate * Time |
| FV = | 1000 + 1000 * 5% * 10 |
| FV = | 1500.00 |
| DIFFERENCE = | 1628.89 - 1500.00 |
| 128.89 |
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