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Question 25 points Afriend wants to deposit 52000 into a savings account. She goes to two banks and is offered competing interest rates for the account. Bank 1 has a 10 interest rate, and compound once annually. Bank 2 has an interest rate, but compounds monthly. Use the following annually compounded interest formula A-P(1+r)* where is the accumulated amount, Pis the principal amount deposited, ris the annual interest rate (as a decimal) and testhe number of years. For accounts that compound more frequently than once annually, you must use A - P(1+1/m) where m is the number of times the account compounds per year. Use fprintf to create a table for all account balances for the first five years for each account so that your friend can compare and decide which one to selective year, compound monthly into annunal amount, annual amount) Attach File Browse My Computer Browse Content Collection Question 2 of Moving to another question will save this response.

Answer 1

Calculation table if invest in Bank 1

	A=P(1+r)t	Accumulated Amount
Year 1	$2000(1+0.10)1	$2200
Year 2	$2000(1+0.10)2	$2420
Year 3	$2000(1+0.10)3	$2662
Year 4	$2000(1+0.10)4	$2928.20
Year 5	$2000(1+0.10)5	$3221.02

Calculation table if invest in bank 2

	A= P (1+r/m)tm	Accumulated Amount
Year 1	$2000(1+0.09/12)1*12	$2187.61
Year 2	$2000(1+0.09/12)2*12	$2392.83
Year 3	$2000(1+0.09/12)3*12	$2617.29
Year 4	$2000(1+0.09/12)4*12	$2862.81
Year 5	$2000(1+0.09/12)5*12	$3131.36

Recommendation:- My Friend should invest in bank 1 because he will earn $89.66 ($3221.02 -$3131.36) more in comparatively of Bank 2 in 5 years.