Question

Jinnifer is trying to decide between two checking account plans. After researching plans at two banks, she finds that Bank A offers a monthly compounded interest rate of 0.15%, while Bank B offers 1.5% interest compounded annually. Which is the better plan? Explain.

Answer 1

Bank A because in 12 months, the rate will be more than the annual rate in Bank B. You will save more in Bank A.

I hope this helps!