Social Studies

Hardy

18 September, 07:35

Cameron owns a small business and is looking for a new bank to hold his business

deposits. He also wants to take out a loan to purchase some necessary equipment and

would prefer to get a loan from the bank that he deposits his money with. He expects to

keep an average of $25,000 on deposit and will need a loan of $250,000. After doing some

research, Cameron created a table of the average interest rates various banks offered on

deposits and the average amount they charged on loans.

Average interest on deposits

Average Interest on loans

Bank 1 Bank 2

3.0% 1.0%

6.5% 2.5%

Bank 3 | Bank 4

7.0% 5.5%

7.0% 5.0%

Which bank should Cameron patronize?

Bank 1

Bank 2

Bank 3

Bank 4