Answer:
A deal with bank B is a better deal as they offer form interest.
Step-by-step explanation:
P = $5,000
Bank A : R = 3.25%, T = 5 years
Bank A : r = 2.75%, t = 6 years
SIMPLE INTEREST = [tex]\frac{P \times R \times T}{100}[/tex]
BANK A:
So, Simple Interest offered by bank A = [tex]\frac{5000 \times 3.25 \times 5}{100} = 812.5[/tex]
⇒Bank A offers simple interest of amount $812.5.
BANK B:
So, Simple Interest offered by bank B = [tex]\frac{5000 \times 2.75 \times 6}{100} = 825[/tex]
⇒Bank A offers simple interest of amount $825.
Hence, as we can see Bank B offers $12.5 more interest by bank A. So, a deal with bank B is a better deal.
