THE FORMULA FOR COMPOUNDED INTEREST CAN BE DEFINED AS A= P (1 + R)...

75. The formula for compounded interest can be defined as A= p (1 + r)

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, where Ais the total value of theinvestment,pis the principle invested,ris the interest rate per period, and nis the number of periods.If a $1,000 principle is invested, which bank gives a better interest rate for a savings account, Bank A orBank B?(1) The interest rate at Bank A is 4% compounded annually.(2) The total amount of interest earned at Bank B over a period of five years is $276.28.