michelle wants to borrow $4,500. bank a will lend michelle the money at a simple annual interest rate of 9%…

michelle wants to borrow $4,500. bank a will lend michelle the money at a simple annual interest rate of 9% for 6 years. bank b will lend her the money at 11% for 4 years. which bank would charge michelle the least amount of interest? explain.

michelle wants to borrow $4,500. bank a will lend michelle the money at a simple annual interest rate of 9% for 6 years. bank b will lend her the money at 11% for 4 years. which bank would charge michelle the least amount of interest? explain.

Answer

Explanation:

Step1: Calculate interest for Bank A

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P=$4500$, $r = 0.09$, and $t = 6$. $I_A=4500\times0.09\times6$ $I_A = 4500\times0.54$ $I_A=$2430$

Step2: Calculate interest for Bank B

Using the same formula $I = Prt$, with $P = 4500$, $r=0.11$, and $t = 4$. $I_B=4500\times0.11\times4$ $I_B=4500\times0.44$ $I_B=$1980$

Step3: Compare the two interests

Since $1980<2430$, Bank B charges less interest.

Answer:

Bank B charges the least amount of interest.