Amir has $\$25\ 000$ that he does not need for the next $18\text{ months}$. Two banks offer

Question

Amir has $\$25\ 000$ that he does not need for the next $18\text{ months}$. Two banks offer him the following investment accounts. Account P$3.6\%$ per annum compounded monthly, together with a $\$60$ cash reward Account Q$3.8\%$ per annum simple interest Determine which account gives Amir the greater total value after $18\text{ months}$, and state how much more he receives.

Accepted Answer

Account P, by approximately $\$19.98$.

Standard Form and Compound Interest - Comparing Simple and Compound Interest Plans

Standard Form and Compound Interest - Comparing Simple and Compound Interest Plans

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