The National Bank of Wynona offers two types of savings account. The Top-Up-N-Saver account pays 2.5%...

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Finance

The National Bank of Wynona offers two types of savings account.The Top-Up-N-Saver account pays 2.5% annual compound interest,whereas the Super-Saver account pays 3% annual simple interest. Ifwe put in $1,000 now and leave the money in the bank account for 10years, which account would pay the most interest (and how muchmore)?
Select one:
a. The Top-Up-N-Saver account would pay $19.92 more ininterest.
b. The Top-Up-N-Saver account would pay $50 more ininterest.
c. The Super-Saver account would pay $50 more in interest.
d. The Super-Saver account would pay $19.92 more ininterest.
e. Both accounts would pay the same interest.

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Compound interest formula Amount Principal 1 rn where Amount is the value after 10 years Principal 1000 r rate of interest 25 and n is the tome period 10 Now See Answer

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