Peter has RM10,000 that he can deposit in any three savings accounts for three years. Bank...

 

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Peter has RM10,000 that he can deposit in any three savings accounts for three years. Bank A compounds interest on an annual basis, Bank B compounds interest twice each year, and Bank C compounds interest each quarter. All three banks have a stated annual interest rate of 4%. What amount would Peter have at the end of the third year, leaving all interest paid on deposit, in each bank? Based on your findings, which bank should Peter choose? Why? (10) Peter has RM10,000 that he can deposit in any three savings accounts for three years. Bank A compounds interest on an annual basis, Bank B compounds interest twice each year, and Bank C compounds interest each quarter. All three banks have a stated annual interest rate of 4%. What amount would Peter have at the end of the third year, leaving all interest paid on deposit, in each bank? Based on your findings, which bank should Peter choose? Why? (10)

Answer rating: 100% (QA)

To calculate the amount Peter would have at the end of the third year in each bank we can use the co... View the full answer