Anastasia was trying to decide which investment plan would be best over 10 years. Bank A was offering 8.5% simple interest on he
r money using the formula I=Prt Bank B was offering 8% compounded annually using the formula A=P(1+r)^t. Which bank is a better investment if she has $2,000 to invest for 10 years?
A. Bank A is the better investment. In 10 years, her $2,000 will grow to $4,317.85, and with bank B, her $2,000 will grow to $3,700.
B. Bank B is the better investment. In 10 years, her $2,000 will grow to $4,317.85, and with bank A, her $2,000 will grow to $3,600.
C. Bank A is the better investment. In 10 years, her $2,000 will grow to $4,521.97, and with bank A, her $2,000 will grow to $3,700.
D. Bank B is the better investment. In 10 years, her $2,000 will grow to $4,317.85, and with bank A, her $2,000 will grow to $3,700.
