The following table shows the different plans offered by two banks for an investment. Alvin decides

Question

The following table shows the different plans offered by two banks for an investment. Alvin decides to invest $\$8600$ for $5 \frac{1}{2}$ years in either one of the investment plans offered by the banks. BankInvestment plan $A$Simple interest at the rate of $3.7\%$ per year. $B$Compound interest at the rate of $3.5\%$ per year compounded half-yearly. Calculate the amount of interest earned when Alvin invests in Bank $A$. Bank $B$. Hence, state the bank that Alvin should invest his money in.

Accepted Answer

(a)(i) $\$1750.1$ (ii) $\$1808.23$ (b) Bank B

Standard Form and Compound Interest

Standard Form and Compound Interest