John wants to invest £100 into a savings account for 15 years. If he invests in saving account A he will receive 3.5% simple interest and if he invests in savings account B he will receive 3% compound interest. Which account should he choose and why?

100 + (3.5 x 15) = 152.50 100 x 1.0315 = £155.80 Therefore he should choose savings account B because after 15 years he will have gained more money through interest than in account A.

VD
Answered by Victoria D. Maths tutor

2461 Views

See similar Maths GCSE tutors

Related Maths GCSE answers

All answers ▸

Solve the simultaneous equations x^2+ y^2 = 29 and y–x = 3


Sam needs to make a drink from orange cordial and lemonade in the ratio 1:9. How much orange cordial does he need to make 1500ml?


How do I solve a quadratic equation like x^2 - 2x - 35 = 0 without using a calculator?


How do you find 24% of 1546?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences