- Walch Education
Stan is trying to choose the best savings account for his business. Stan has 10,000 that he needs to invest for the next two years in a savings account for emergency situations. Stan has three options to choose from: Bank 1: Offers 2.5% interest accruing quarterly. Bank 2: Offers 3% interest accruing semi-annually. Bank 3: Offers 2% interest accruing monthly. Which is the best option for Stan if he wants to make the most of his funds? If you were a bank, which of the three offers would be best for you? Why would you want to offer this interest rate? Justify your answer.
This applet is provided by Walch Education as supplemental material for their mathematics programs. Visit www.walch.com for more information.