I want to deposit money 1200 dollars in a bank. Bank offers me with a simple account with a yearly interest rate of .12. Bank b offers me a compound quarterly account with a yearly interest rate of .8. Which bank will offer me the most money after 3 years.

The simple interest will offer more money.

Step-by-step explanation:

Considering the simple interest offer, we would apply the formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount deposited.

P represents the principal or amount deposited

R represents interest rate

T represents the duration in years.

From the information given,

P = $1200

R = 0.12 = 0.12 × 100 = 12%

T = 3 years

I = (1200 × 12 × 3)/100 = $432

Total balance after 3 years is

1200 + 432 = $1632

Considering the compound interest offer, we would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = 1200

r = 0.08

n = because it was compounded 4 times in a year.

t = 3 years

Therefore,

A = 1200(1 + 0.08/4)^4 × 3

A = 1200(1 + 0.02)^12

A = 1200(1.02)^12

A = $1522

3,000,540

step-by-step explanation: