Tyler has $1000 that he wants to put in a savings account. He wants to save the money for 6 years. After 6 years he plans to take the money out and spend it on college. He looks at two different banks, and they offer him different interest options. (i've already solved bank A which is $1,240)
Bank B offers Tyler 3% interest compounded annually. How much would Tyler’s investment be worth after 6 years in this account? Show your calculations below.
Tyler’s mom also has $1000 that she wants to put in a savings account. She is saving her money for retirement. She plans to retire in 30 years.
Tyler’s mom must also choose between Bank A and Bank B.
Bank A offers 4% simple interest. How much would Tyler’s mom’s investment be worth after 30 years in this account? Show your calculations below.
Bank B offers 3% interest compounded annually. How much would Tyler’s mom’s investment be worth after 30 years in this account? Show your calculations below.
