Question: 2.1 Briefly explain the difference between simple interest and compounded interest. 2.2 Mr Mmusi wants to make an investment of R125 000 in one on

2.1 Briefly explain the difference between simple interest and compounded interest.

2.1 Briefly explain the difference between simple interest and compounded interest. 2.2 Mr Mmusi wants to make an investment of R125 000 in one on the well-known banks in South Africa. He then approached two banks (Bank A and Bank B) which offered him different investment options. - Bank A: 11\% compounded annually for 5 years. - Bank B: 10\% compounded quarterly for 5 years. Calculate the return from each investment after 5 years and recommend to Mr Omar which bank should he invest in and why. Subtotal marks =10

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