Isabelle Wants to Invest $1,000

question 231

Multiple Choice

Isabelle wants to invest $1,000. She wants to withdraw her money three years from now. Which bank should she use if she wishes to maximize her investment?

• A) Bank A, which offers a simple rate of 4%.
• B) Bank B, which offers a simple rate of 5%.
• C) Bank C, which offers a rate of 4% compounded annually.
• D) Bank D, which offers a rate of 5% compounded monthly.
• E) Bank E, which offers a rate of 5% compounded annually.

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