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You want to deposit $2,500 now into a savings account for 5 years. The Simple bank offers 9% per year with simple interest and the Compound bank offers 8% per year with monthly compounding. Which bank would you prefer and why?

a. The Simple bank because it offers an additional $121.95 in interest.

b. The Simple bank because it offers an additional $35.66 in interest.

c. The Compound bank because it offers an additional $48.32 in interest.

d. The Compound bank because it offers an additional $99.61 in interest.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92670325

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