Question

Bank A charges ordinary interest, while bank B charges exact interest. Susan

Carsten wants to borrow $11,000 for 90 days at 9%.
Calculate the cost of interest at each bank.
Nhich bank offers a better deal?

Answer 1

1. Bank A= 11000*9%= 990, Bank B= 11000*9%*(90/365)= 244.11

Explanation: