00:01
For this question, we give a number of banks and we need to figure out which bank you will pay the least interest to.
00:06
So we can just pretend that you have, let's say, $10.
00:10
And so that's the amount you're taking out just to compare to different values that would get out of it.
00:15
So first of all, we know that bank a is six point.
00:19
Let's say you have $10 over five years.
00:25
So we can say that, well, for bank a, we have our value is equal to our principal value, which is 10.
00:32
Times 1 plus a rate, which is 0 .064, compounded annually, so that's just over 1 times, or raise to the fifth power...