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A savings account at Bank A pays 5% simple interest. An account at Bank B pay 2% compound interest. The table shows the balance in each account after an initial deposit $1000.


Which describes the balance after a long period of time?

A savings account at Bank A pays 5 simple interest An account at Bank B pay 2 compound interest The table shows the balance in each account after an initial dep class=

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l3unny

The answer is B. The balance in bank b will be greater

Answer:

option B.

Step-by-step explanation:

given,

Bank A pays 5% simple interest

Bank B pays 2% compound interest

both Bank has initial deposit of $1000.

when we look at the table the growth in the 5 years are given.

but when we look for long period of time

company B will be have balance more than  company A after long period of time.

hence, the correct answer is option B.

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