Answer:
Investment B is £97 more than investment A
Step-by-step explanation:
For investment A
£160is saved for 2 years every month
Total amount at the end of the two years= 2*160*12= £3840
The the percentage interest added is
=2.5/100*3840
= £96
Total amount= 3840+96
Total amount=£ 3936
For investment B
£3800 is compounded every year for two years at 3%
Total amount= 3800(1+0.03/2)^(2*2)
Total amount= 3800(1+0.015)^4
Total amount= 3800(1.015)^4
Total amount= 3800(1.061363551)
Total amount= 4033.18
Total amount= £4033
The difference between the two investment= 4033-3936
= £97
