Question

Anil wants to invest £25000 for 3 years in a bank.

Personal Bank
Secure Bank
Compound Interest
Compound Interest
2% for each year
4.3% for the first year
0.9% for each extra year
Which bank will give Anil the most interest at the end of 3 years?

Answer 1

Secure Bank

Explanation:

for a process to work out the interest after one year e.g. 0.02 × 25000 (=500)

or 0.043 × 25000 (=1075) or for 1.02 or 25500 or 1.043 or 26075

for process to find value of the investment after 3 years or the multiplicative factor for 3

years at one of the banks, e.g. 25000 × 1.02 × 1.02 × 1.02 oe (= 26530…) or 1.023 (=

1.0612…) or 25000 × 1.043 × 1.009 ×1.009 oe (= 26546…) or 1.043 × 1.009 ×1.009 (=

1.0618.....)

or Secure Bank from correct figures,

eg. 26530.. and 26546.. or 1530… and 1546… or 1.0612... and 1.0618…