Asked by Nadini
A bank offers two interest rates for a fixed deposite
Offer 1: 12% compounded quarterly
Offer 2: 13.55% simple interest
If Ali want to invest for one year, which offer would he choose?. Show your working
Offer 1: 12% compounded quarterly
Offer 2: 13.55% simple interest
If Ali want to invest for one year, which offer would he choose?. Show your working
Answers
Answered by
R_scott
quarterly ... {[1 + (0.12 / 4)]^4} - 1 = ?
simple ... 0.1355
which is greater
simple ... 0.1355
which is greater
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