Question

Would you rather have 600 in on account with 5% interest or 500 in one account with 6% interest? An why mah dude.

Answer 1

5% of 600 = 5/100 x 600 = $30
6% 0f 500 = 6/100 x 500 = $30
They both earn the same interest, so there is no difference if you place it for a year.

if compounded for 10 years
600(1+ 0.05)^10 = $977
500(1+0,06)^10 = $895
So it is better to put $600 compounded at 5%