Question

Rob deposits $3,500 at Town Bank,

which offers a 3.75% interest rate.
Josh deposits $5,000 at Charter
One Bank, which offers 1.18%. Who
will have the most money after 25
years?

Answer 1

ROB - $6781.25

JOSH - $6475

Explanation:

ROB - TOWN BANK:

3500 ÷ 100 = 35

35 × 3.75 = 131.25

131.25 × 25 = 3281.25

3500 + 3281.5 = $6781.25

JOSH - CHARTER ONE BANK:

5000 ÷ 100 = 50

50 × 1.18 = 59

59 × 25 = 1475

5000 + 1475 = $6475

SO AS YOU CAN SEE ROB HAS MORE MONEY THAN JOSH