Question

If you put $500 in the bank today and leave it for 10 years, will you have more money if the bank pays you 425 percent annum in simple interest OR 3.65 percent per year and compounds the interest daily?

Answer 1

Answer:$712.16 with compound interest

Step-by-step explanation:Compound interest yields significantly more than simple interest in this scenario.

Choosing the 3.65% compounded daily option would result in a higher return on your investment.

Remember, always check the terms and conditions of your bank or financial institution to understand how interest is calculated 23