Cameron owns a small business and is looking for a new bank to hold his business
deposits. He also wants to take out a loan to purchase some necessary equipment and
would prefer to get a loan from the bank that he deposits his money with. He expects to
keep an average of $25,000 on deposit and will need a loan of $250,000. After doing some
research, Cameron created a table of the average interest rates various banks offered on
deposits and the average amount they charged on loans.
Average interest on deposits
Average Interest on loans
Bank 1 Bank 2
3.0% 1.0%
6.5% 2.5%
Bank 3 | Bank 4
7.0% 5.5%
7.0% 5.0%
Which bank should Cameron patronize?
Bank 1
Bank 2
Bank 3
Bank 4