Question

Which is a better deal ​

Answer 1

A deal with bank B is a better deal as they offer form interest.

Explanation:

P = $5,000

Bank A : R = 3.25%, T = 5 years

Bank A : r = 2.75%, t = 6 years

SIMPLE INTEREST =
`(P * R * T)/(100)`

BANK A:

So, Simple Interest offered by bank A =
`(5000 * 3.25 * 5)/(100)  = 812.5`

⇒Bank A offers simple interest of amount $812.5.

BANK B:

So, Simple Interest offered by bank B =
`(5000 * 2.75 * 6)/(100)  = 825`

⇒Bank A offers simple interest of amount $825.

Hence, as we can see Bank B offers $12.5 more interest by bank A. So, a deal with bank B is a better deal.