Rohan has $100.00 that he wants to save in a bank. Bank A offers two types of savings accounts. One has a 5% simple interest rate, and the other has a 4.8% compound interest rate. Bank B also offers two types of savings accounts. One has a 3% simple interest rate, and the other has a 4% compound interest rate.

Question

Rohan has $100.00 that he wants to save in a bank. Bank A offers two types of savings accounts. One has a 5% simple interest rate, and the other has a 4.8% compound interest rate. Bank B also offers two types of savings accounts. One has a 3% simple interest rate, and the other has a 4% compound interest rate.

Question
Use the passage to answer the question.

Which account should Rohan choose in order to earn the most interest after leaving the account open for 5 years?

(1 point)
Responses

Bank A simple interest account

Bank A simple interest account

Bank A compound interest account

Bank B simple interest account

Bank B compound interest account

Answer 1

Rohan should choose Bank A compound interest account in order to earn the most interest after leaving the account open for 5 years.