7. Here are the interest rates for two savings accounts:
• Savings account A-
.
• Savings account B
-
a compound interest rate of 2.5% per year.
an interest rate of 5% of the initial amount in the first year, then an
interest rate of 1% of the initial amount for each year thereafter.
litres
(2)
If you opened an account with an initial amount of £500 and then made no withdrawals, which
account would contain the larger amount after the first three years? You must show your working.