Math, asked by ashu3383, 1 year ago

Marco wants to invest his savings in a bank for 3 years he has £15000 to invest

Answers

Answered by glen13060
4

Answer:wow that very great

Step-by-step explanation:

Answered by lublana
1

Marco should choose the bank which offer 2.5% interest compounded annually to get most interest over three years period.

Step-by-step explanation:

P=Rs 15000

One bank offer interest rate for three years

r=2.5%

Amount for n years

A=P(1+\frac{r}{100})^n

Where P=Principle

r=Rate of interest

n=Time (in years)

Using the formula

Amount received by Marco when one bank offer rate of interest 2.5%

When one bank offer rate of interest 2.5% then

C.I=Amount-P=16153.36-15000=Rs 1153.36

For other bank trust

S.I=\frac{P\times r\times t}{100}

Where t=Time

Using the formula and substitute r_1=3.8%

t=1 year

S.I=\frac{15000\times 3.8\times 1}{100}=570

Amount=P+S.I=15000+570=15570

Now, P=15570

Amount received after 1 year then it becomes principle money for next year

r=3.8+1=4.8%

t=1 year

S.I=\frac{15570\times 4.8\times 1}{100}=747.36

Principle money for third year

P=A=15570+747.36=16317.36

r=4.8+1=5.8%

t= 1 year

S.I=\frac{16317.36\times 5.8\times 1}{100}=903.06

The interest received in three years=Rs 903.06

Therefore, the bank which offer 2.5 % compound  interest annually gives Marco more interest over three years.Therefore, Marco should choose the bank which offer 2.5% interest compounded annually.

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