Question

Two banks offer compound interest on your investment while you deposit with them. Bank A calculates compound interest annually and Bank B calculates half-yearly. Which bank do you choose to invest and why? Justify your answer with simple example.
PLEASE NO SCAMMING
SCAMMMERS ARE GAYSSS

Answer 1

Answer:

Bank B will give higher interest than Bank B.

It compounds interest twice a year, so even the interest of first six months is counted as principle for the second year, ( for a fixed rate, interest increases with principle).