Question

Please help me with both questions :(

Answer 1

2.) $520

3.) less

Explanation:

I'm going to assume that the interst is compoudning and is convertable once a year

The compound interest formula for interest compounding only once a year is as follows

`AV=PV(1+i)^n`

plug in the numbers and get

`500(1+.04)^(1)=500*1.04=520`

3.) If the interest rate is lower at the credit union he would obvioulsy be paying less (assuming that this interest rate is convertable annually as well)