preston received a paycheck for $900.00 and he wants to invest it in a savings account. A savings account at bank A earns 4% interest compounded monthly and a savings account at bank B earns 5% simple interest. If Preston plans to deposit the $900.00 and leave it in the account for 3 years, at which bank would he earn more interest?

Question

Babykins

2 November, 20:35

+1

Answers (1)

Know the Answer?

Billy Carson · Answer 1

Bank A; he would earn a total $432, while only $132 at Bank B.