First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest compounded annually. If you made a $54,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years?

You will have $10,306 more

Explanation:

In this question, we are asked to calculate the difference in the amount of money we will earn if the same deposit amount is made in two different banks with different interest payment scheme

Firstly, Calculate the amount in the account as follows:

Future value = Interest + Amount = (Am ount x Period x Rate) + Amount = ($54,000 x 10 x 6%) + $54, 000 = $32,400 + $54,000 = $86,400

Therefore, the future value is

$86,400

Now, we calculate the amount by using the compounding as follows:

Future value = Amount x (1+ Rate)^n =

$54,000 * (1+0.06)^10

= $54,000 * 1.791 = $96,706

Therefore, the compound future value is

$96,706

The difference in amount is calculated as follows:

Difference in amount = $96,706 - $86,400 = $10,306

the u.s. census bureau produces data on the population and economy nationwide. it can you to analyze the kind of people living in your neighborhood. it does not show you the market of people willing to buy your product or an existing market for your product. that will require more market research. the census bureau only gives you an insight to the demographics in your area.