marco wants to invest his savings in a bank for 3 years. he has £15000 to invest and recieves offers from two banks: bank of peace= 2.5% a year compound interest or bank of trust= 3.8% for 1st year 1% extra for each extra year. which bank should marco choose to get the most interest over the three year period? you must show all your working

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Shamsadsyed Shamsadsyed · Answer 1 · 2020-01-25T18:47:24+01:00

Bank of Peace= 15000(1+0.025)³=£16153.36

Bank of Trust=15000(1+0.038)=£15570

£15570(1+0.01)=£15882.95

Bank of Peace is the best choice.

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ewomazinoade ewomazinoade · Answer 2 · 2021-11-26T10:51:15+01:00

I would choose the Bank of Peace to get the most of my savings.

Formula for calculating the compound value of the savings at the Bank of Peace = FV = P (1 + r)^n

FV = Future value

P = amount deposited

R = interest rate

N = number of years

£15,000 x (1.025)^3 = £16,153.36

Interest earned at the Bank of Trust in the first year = £15,000 x 0.038 = $570

Total amount at the end of the first year = $570 + £15,000 = £15,570.

Value for the two extra years = $15,570 x (1.01)^2 =$15,882.96

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