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You want to save $25,000 for a down payment on a house. Bank A offers to...

You want to save $25,000 for a down payment on a house. Bank A offers to pay 9.35% per year if you deposit $11,000 with them, while Bank B offers 8.25% per year if you invest $10,000 with them. How long will you have to wait to have the down payment accumulated under each option?
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Answer #1
We have to use financial calculation to solve this
put in calculator for each case
Bank A Bank B
FV 25000 25000
PV -11000 -10000
PMT 0 0
I 9.35% 8.25%
compute N                9.18                   11.56
Therefore bank A will take 9.18 year
Bank B will take 11.56 year
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