The Continental Bank advertises capital savings at 6.6% compounded annually, while TD Canada Trust offers premium savings at 6.5% compounded monthly. Suppose you have $2,000 to invest for two years. What is the difference in the amount of interest?Select one:a. 4.00b. 4.04c. 4.17d. 4.08

Answer:The difference in the amount of interest is about $4.146.Step-by-step explanation:Given information: Principal = $2000, time = 2 year.The formula for amount is[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where, P is principal, r is rate of interest, n is number of times interest compounded in an year and t is time in years.The Continental Bank advertises capital savings at 6.6% compounded annually.[tex]A=2000(1+\frac{0.066}{1})^{(1)(2)}=2272.712[/tex]The interest is[tex]I_1=A-P=2272.712-2000=272.712[/tex]D Canada Trust offers premium savings at 6.5% compounded monthly.[tex]A=2000(1+\frac{0.065}{12})^{(12)(2)}=2276.85786593\approx 2276.858[/tex]The interest is[tex]I_2=A-P=2276.858-2000=276.858[/tex]Difference in the amount of interest is[tex]Difference= I_2-I_1=4.146[/tex]The difference in the amount of interest is about $4.146.