05-11-2010, 08:41 PM
Suppose you have a choice between two accounts, Account A and Account B. Account A provides 5% interest, compounded annually and Account B provides 5.25% simple interest. Consider a deposit of Rs.10, 000 in both accounts.
Requirement
Which account provides a highest balance at the end of five years?
What is the amount of interest on interest?
NOTE You are not required to show the calculations in answer. Be specific and to the point. Only provide one line answer to each question.
Requirement
Which account provides a highest balance at the end of five years?
What is the amount of interest on interest?
NOTE You are not required to show the calculations in answer. Be specific and to the point. Only provide one line answer to each question.
