Rohan has 100 dollars that he wants to save in a bank. Bank A offers two types of savings accounts. One has a 5% simple interest rate and the other has a 4.8% compound interest rate. Bank B also offers two types of savings accounts. One has a 3% simple interest rate and the other has a 4% compound interest rate. Which account should Rohan choose in order to earn the most interest?

Question

a. Bank A simple interest
b. Bank A compound interest
c. Bank B simple interest
d. Bank B compound interest

B

Answer 1

I agree.