Bella received $1,200 after winning a national mathematics competition. She plans to invest this money for 5 years. Her bank offers 2 different saving options: Option A : Customers receive a simple...

Bella received $1,200 after winning a national mathematics competition.

She plans to invest this money for 5 years.

Her bank offers 2 different saving options:

Option A: Customers receive a simple interest rate of 7.8%.

How much money will be in Bella's account after 5 years if she chooses option A?

Option B: Customers receive compound interest of 7.2%.

How much money will be in Bella's account after 5 years if she chooses option B?

If you are a customer adviser, which option would you recommend to Bella?

Option A

Option B

Jun 05, 2022

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