Samir is trying to decide between two checking account plans. after researching plans at two banks, he finds that unity bank offers a monthly compounded interest rate of 0.14%, while sunrise banking offers 1.6% interest compounded annually. which is the better plan? explain.
(show work)

The monthly compounded interest rate of 0.14% of Unity Bank is a better plan.

Step-by-step explanation:

Step 1 : Write the formula for calculating a monthly compound interest rate and for calculating an annually compounded interest rate.

Monthly compound interest rate = P(1+r/n)^nxt

n=12 (number of months in a year)

t=1 (number of years)

Annually compound interest rate = P(1+r/n)^nxt

n=1 (because it is for 1 year only)

t=1 (number of years=1)

Step 2 : Lets assume that P is $100 in both banks and time is 1 year.

Step 3 : Lets substitute the values to find out which one is better.

Monthly compound interest rate = P(1+r/n)^nxt

Monthly compound interest rate = 100(1+0.14/12)^12x1

Monthly compound interest rate = 114.93

114.93 - 100 = $14.93 per month

14.93 x 12 = $179.16 for 12 months or 1 year

Annually compound interest rate = P(1+r/n)^nxt

Annually compound interest rate = 100(1+1.6/1)^1x1

Annually compound interest rate = 260

260-100 = $160 for 1 year

Therefore, the monthly compounded interest rate of 0.14% of Unity Bank is a better plan.

!!

it shoild be o

step-by-step explanation: