Question

At the age of 18, Albert inherits $100,000 from his grandfather. One bank offers to invest this money at 10% for 5 years. A second bank offers a rate of 8% for 7 years. Which investment will yield the most money?

Answer 1

The second bank that offers 8% for 7 years will yield the most money.


Bank 1: 100,000 x 10% x 5 = 50,000

Bank 2: 100,000 x 8% x 7 = 56,000