Question

Bank A was offering simple interest at 2.5% per year, which was clearly a better deal than the 2.5% compound interest rate at Bank B. Choose the correct answer below. O A. The statement does not make sense, because the simple interest pays the same amount as the compound interest at the same interest rate. B. The statement makes sense, because the simple interest pays more than the compound interest. OC. The statement does not make sense, because the compound interest pays more than the simple interest.

Answer 1

Correct answer is (c)

This statement doesn't make sense, because the compound interest pays more than the simple interest.

optim (c) Correct on Because Simple Interest is calculeted principle amount every year. Whereas Compount Interest is calculated the principle amount as well as interest amount accumulated till date. So, it is clean that Compound interent pays Simple Interest. on more then Therefore, the above statement does not make sense, because compound interest paye thin the simple interest. mm

Optim (B) Incorrect Because as mentioned above, Simple interest pays less than the compound interest