Rowan has $100 that he wants to save in a bank bank a offers two types of savings accounts one has a 5% interest rate and the other has a 4.8% compound interest 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

Rowan has $100 that he wants to save in a bank bank a offers two types of savings accounts one has a 5% interest rate and the other has a 4.8% compound interest 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

Use the passage to answer the question
Which account should Ron choose? In order to earn the most interest after leaving the account open for five years

Answer 1

Rowan should choose the savings account with the 5% interest rate at bank A in order to earn the most interest after leaving the account open for five years. This is because the interest rate of 5% is higher than the other options listed, allowing Rowan to earn more interest on his $100 savings over five years compared to the other accounts.