Answer:
Marcos Should invest with the first bank
Step-by-step explanation:
Formula for finding compound interest is: A = p(1+\frac{r}{n})^{nt}
where
A = the future value of the investment
P = the principal investment amount (the initial deposit)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per unit t
t = the time the money is invested
If marcos choose to invest with the first bank
A = 15000(1+\frac{0.025}{12})^{12*3} = £16166.81
If he choose to invest with the second bank
His principal become 15570 in the first year because of the 3.8% offer from the bank and t becomes 2.
A = 15570(1+\frac{0.01}{12})^{12*2} = £15884.27
Comparing the future value of his investment from both bank, Marcos will get more interest from investing with the first bank.
