Question

Savings account at a bank pays 5% simple interest in account at Bank B pays 2% compounded interest the table shows the balance in each account after an initial deposit of $1000 which describes the balance after a long period of time

Answer 1

The balance in Bank B will be greater.

Explanation:

Because simple interest is just interest on the principle only which is 50 every year doesn't change but with compound interest you will get 2% Interest every year. principle+interest