Faith deposited $\$12 \; 000$ in Bank $\mathrm{A}$ that pays $2\%$ per annum simple interest.

Question

Faith deposited $\$12 \; 000$ in Bank $\mathrm{A}$ that pays $2\%$ per annum simple interest. She also deposited the same amount in Bank $\mathrm{B}$ that pays $1.95\%$ per annum compound interest compounded monthly. Find the total amount of money she will receive from the two banks at the end of $3$ years.

Accepted Answer

$\$25\,442.34$.

Total Returns from Two Banks: Simple vs Compound Interest

Total Returns from Two Banks: Simple vs Compound Interest

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