2025 CHS PRELIMS P1 Q11

Michael deposited some money into bank A which pays a simple interest rate of 3% per annum for 18 months. If he had deposited the same amount of money with bank B, which pays a simple interest rate of 2.5% per annum for 24 months, he would receive $500 more in interest.

1. Find the amount of money he deposited.[2]
2. Find the amount of interest Michael would receive if he were to deposit his money into bank C, which pays a compound interest of 1.9% per annum compounded every 6 months for 24 months.[2]