Question 15 Marks
Asha has some money to spare. She wants to deposit ₹ $15000$ for 3 yr in a bank to earn interest. She has two banks to choose from. Bank A gives an interest of 6% per annum compounded annually and Bank B gives $7\%$ per annum simple interest.
Which bank is better choice for depositing ₹ $15000?$ Justify your choice.
Which bank is better choice for depositing ₹ $15000?$ Justify your choice.
Answer
View full question & answer→Bank A gives compound interest on ₹ 15000
$=15000\left(\frac{106}{100}\right)^3-15000=$ ₹ $2865.24$
Bank B gives simple interest on ₹ 15000
$=\frac{15000\times7\times3}{100}=$ ₹ $3150$
$\therefore$ So, Bank B is a better choice for depositing ₹ $15000.$
$=15000\left(\frac{106}{100}\right)^3-15000=$ ₹ $2865.24$
Bank B gives simple interest on ₹ 15000
$=\frac{15000\times7\times3}{100}=$ ₹ $3150$
$\therefore$ So, Bank B is a better choice for depositing ₹ $15000.$