: Bank X pays 10% simple interest on its savings account balances, whereas Bank Y pays 8% compounded interest annually If you have a $5,000 deposit in each bank and decided to keep these deposits for ten years. Which bank will give you more interest after 10 years deposit, and how much? At's parents have decided to help him pay his college fees. If you know that he will go to college In 6 years and the college costs $4000 per year for 5 years, that are paid upfront each year. How much must they invest now to pay his college fees, if the annual interest rate is 10%