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Mathematics, 27.11.2021 02:10 hvvhvc
Marshall is planning to open a savings account at his local branch and was offered a 2.5% annual interest rate. Most people in his town have an account there because they can walk to the bank and the tellers are friendly.
Marshall’s brother has advised him to open a savings account in a different branch that offers a 3% interest rate. Marshall would have to drive there to do his banking.
How much will Marshall earn in interest on a $1000 deposit? Do you think going out of town is worth the effort?
Would your opinion change is Marshall’s deposit was $1 million?
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