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27 December, 12:30

Bank "A" is offering 2% interest and a $100 debit card on a newly opened savings account with a minimum balance of $1,000 for one year. Bank "B" is offering 5% interest and a $50 debit card on a newly opened savings account with a minimum balance of $1,000 for one year. Assuming you deposit $1,000, which has the better return (interest plus card value) FOR THE FIRST MONTH?

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Answers (2)
  1. 27 December, 13:44
    0
    On the offer of Bank A, the total return (annual) for deposit holder

    = 2%of 1000 + 100 = 120 dollar

    On the offer of Bank B, the total return (annual) for deposit holder

    = 5%of 1000 + 50 = 100 dollar

    Hence the offer of bank A is better in terms of return.
  2. 27 December, 14:43
    0
    The Answer is Bank A

    Explanation:

    Bank A is offering = (Card Value + interest on saving account i. e $100+1000*2%/12) = $101.667

    Bank B is offering = (Card Value + interest on saving account i. e $50+1000*5%/12) = $54.1667

    So the Answer is Bank A because the debit card value of Bank A is greater than Bank B. Therefore overall benefit and return is better of Bank A.
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