of 10: Bank A is offering 2% interest and a $100 debit card on a newly-opened savings account with a...

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QUESTION 8 of 10: Bank A is offering 2% interest and a $100 debit card on a newly-opened savings account with a minimum balance of $1,000 for one year. Bank B is offering 5% interest and a $50 debit card on a newly-opened savings account with a minimum balance of $1,000 for one year. Assuming you deposit $1,000, which has the better return (interest plus card value) FOR THE FIRST MONTH?
a) Bank A
b) Bank B

SnapAndSolve AI · Accepted Answer

To determine which bank offers the better return for the first month, we need to calculate the interest earned in one month and add the value of the debit card.

Bank A:
Interest for one month = (2% annual interest / 12 months) * $1,000 = $1.67
Total return = $1.67 + $100 (debit card) = $101.67
Bank B:
Interest for one month = (5% annual interest / 12 months) * $1,000 = $4.17
Total return = $4.17 + $50 (debit card) = $54.17

Answer: a) Bank A

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of 10: Bank A is offering 2% interest and a $100 debit card on a newly-opened savings account with a...

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