The total return would earn if she deposits at the banks where she would earn a simple interest is $2540 . While the total return she would earn from the bank where she earns a compound interest is $2,575.83.
The total return of Tamika if she deposits at the bank where she would earn a simple interest can be determined using this formula:
Amount = P + [P x r x n]
Where:
P = amount deposited
r = interest rate
n = number of years
2000 + [2000 x 0.09 x 3] =
2000 + 540
= $2540
The total return of Tamika if she deposits at the bank where she would earn a compound interest can be determined using this formula:
Amount = P (1 + r)^n
$2000 x (1.088)^3 = $2,575.83
A similar question was answered here: https://brainly.com/question/23734449?referrer=searchResults
Answer:
After 3 years, Tamika would receive $540 in simple interest from the bank or $575.83 in compound interest from the credit union!!!!!!
