Compound Interest · Example 10

Minh has a choice of banks in which he will open a savings account. He will deposit $3,200 and he wants to get the best interest he can. The banks advertise as follows:

\begin{array}{|c|c|}\hline \text{Bank} & \text{Interest Rate} \\ \hline \text{ABC Bank} & \text{2.08% compounded monthly} \\ \hline \text{123 Bank} & \text{2.09% compounded annually} \\ \hline \text{XYZ Bank} & \text{2.05% compounded daily} \\ \hline\end{array}
Which bank offers the best interest?

OpenStax, Contemporary Mathematics · §6.4 Compound Interest · Example 10