Calvin deposited $\$12 \; 000$ into each of the three banks, bank $\mathrm{A,B}$ and \(\mathrm{C

Question

Calvin deposited $\$12 \; 000$ into each of the three banks, bank $\mathrm{A,B}$ and $\mathrm{C,}$ for $5$ years. All three banks pay the same interest rate of $1.25\%$ per annum. Find the total amount of money he would collect if bank $\mathrm{A}$ pays simple interest. bank $\mathrm{B}$ pays compound interest accumulated yearly. bank $\mathrm{C}$ pays compound interest accumulated monthly.

Accepted Answer

(i) $\$12\,750$. (ii) $\$12\,768.99$. (iii) $\$12\,773.52$.

Comparing Simple and Compound Interest Across Three Banks

Comparing Simple and Compound Interest Across Three Banks

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