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Q 4 : Bank x is offering compound interest of 5 % per year on savings. Bank Y is offering 6 % per year simple

4

: Bank

x

is offering compound interest of

5 %

per year on savings. Bank

Y

is offering

6 %

per year simple interest on a

3 -

year deposit. Which offer is more attractive if we wish to keep our savings in the bank for

3

years?

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