Question

Xavier is thinking where to invest his Php200,00 for 2 years. Is it Bank A which offer 2% interest compounded monthly or at bank B which offers 2.5% compounded quarterly?​

Answer 1

I suggested to go on

Bank B which offers. 2.5 %

Answer 2

• Bank B

Explanation:

Calculate each option and compare

Bank A

Total amount after 2 years

• 200000*(1 + 0.02/12)²⁴ = 208155.22

Bank B

Total amount after 2 years

• 200000*(1 + 0.025/4)⁸ = 210221.51