1. You would like to invest $1250 in a saving account and plan to leave it in the account for 18 months. Bank of Torrance offers to plans. Plan A is a simple interest at 3.5% and Plan B is a compound interest at

2.8% compounded daily. (7 points)

(a) Find the amount of interest for Plan A and Plan B.

(b) What is the difference in the amount of interest earned for Plan A and Plan B? Which plan would you choose?

1. You would like to invest $1250 in a saving account and plan to leave it in the account for 18 months. Bank of Torrance offers to plans. Plan A is a simple interest at 3.5% and Plan B is a compound interest at 2.8% compounded daily. (7 points) (a) Find the amount of interest for Plan A and Plan B. (b) What is the difference in the amount of interest earned for Plan A and Plan B? Which plan would you choose