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. If we put in $1,000 now and leave the money in the bank account for 10 years, which account would pay the most interest (and how much more)?

Select one:
a. The Top-Up-N-Saver account would pay $19.92 more in interest.
b. The Top-Up-N-Saver account would pay $50 more in interest.
c. The Super-Saver account would pay $50 more in interest.
d. The Super-Saver account would pay $19.92 more in interest.
e. Both accounts would pay the same interest.

Answer rating: 100% (QA)

d The SuperSaver account would pay 1992 more in interest Compound interest formula Amount ... View the full answer