Skylar decides to invest $⁢3,500 Bank A offers a 3.65% annual interest rate compounded monthly, while Bank B offers a 3.65% annual rate but compounded quarterly. Skylar plans to invest for 2.5 years ( 30 months). What is the exact total amount Skylar will have in each bank after 2.5 years? Compound Interest Formula: A=P⁢(1+(r)/(n))^n⁢t

Use the compound interest formula with the number of compounding periods over 2.5 years. Bank A compounds monthly, so it has 12 × 2.5 = 30 periods: $3,500(1 + 0.0365/12)^30 ≈ $3,833.87. Bank B compounds quarterly, so it has 4 × 2.5 = 10 periods: $3,500(1 + 0.0365/4)^10 ≈ $3,832.81. These amounts match the choice listing $3,833.87 for Bank A and $3,832.81 for Bank B.

AI-written and checked against the verified answer.