You're expected to know the compound interest formula:Jemima has $5000 to invest for two and a half years.
Her bank offers two different investment schemes:
. . an account that pays 3.25% interest at the end of each year,
. . an account that pays 1.3% interest at the end of each six months.
Investigate each scheme and recommend to Jemima, with reasons, what she should do.
. . where: .
Plan A has: .
Plan B has: .
Plan A (3.25% annually) is the more profitable plan.