There are 2 banks, Bank A and Bank B. Bank A provides compound interest of 1.3%. Bank B provides interest of 3.5% for the first year and then 0.7% for each extra year. James wants to invest £250. Which bank provides the most interest after 4 years?
Bank A: £250*(1.013^4) = £263.25570.... , Bank B: £2501.035(1.007^3) = £264.2218.... , 264>263 therefore Bank B provides more interest than Bank A
SL
Related Maths GCSE answers
All answers ▸Find the coefficient of the constant term of the expression (2x+1/(4x^3 ))^8
How do you solve the following simultaneous equations? Equation 1: 2x + 3y = 13 Equation 2: 3x - y = 3
Solve 4x^2 - 3x - 4 = 0
Jess wants to buy 30 mugs for her tea party. She can buy them at Shop A at £3.49 each or at Shop B as a pack of 30 at £58 plus VAT at 20%. She wants to get the cheapest option. Which shop should she buy from?