Rowan has $100 that he wants to save in a bank bank a offers two types of savings accounts one has a 5% interest rate and the other has a 4.8% compound interest 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
Use the passage to answer the question
Which account should Ron choose? In order to earn the most interest after leaving the account open for five years
1 answer
Rowan should choose the savings account with the 5% interest rate at bank A in order to earn the most interest after leaving the account open for five years. This is because the interest rate of 5% is higher than the other options listed, allowing Rowan to earn more interest on his $100 savings over five years compared to the other accounts.