Question

You want to deposit $1000 in a savings account for 3 years. One bank

adds a $100 bonus to your principal and offers a 2% simple annual
interest rate. Another bank does not add a bonus, but offers 6% simple
interest per year. Which bank should you choose? Explain.

Answer 1

2nd bank

Explanation:

bank one:10*2=(20*3=60)

$1000+$100+$60=$1160

total after 3 years = $1160

bank two:$10*6=(60*3=180)

$1000+$180=$1180

total after 3 years = $1180