Bank A charges a 12% simple interest rate and Bank B charges an 11% simple discount...

Question

Question

Bank A charges a 12% simple interest rate and Bank B charges an 11% simple discount rate. Show mathematically which bank has the better deal

Answer 1

Answer #1

Bank A interest rate=12.00%

Bank B interest rate=(11%/(1-11%))=12.36%

So Bank A offers low interest rate which means it offers better deal

Answer 2

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