Asked by michelle hopkins on May 10, 2024
Verified
On the Internet you find the following offers for opening an online account. Which of them is the best offer if you have $2,000 to save for two years?
A) An interest rate of 5 percent, with the bank charging you a $15 processing fee at the time you open your account
B) An interest rate of 3.5 percent, with the bank giving you a $35 bonus to open your account
C) An interest rate of 4 percent, with the bank giving you a $20 bonus at the time you open your account
D) An interest rate of 4.5 percent, with no processing fee and no bonus
Interest Rate
The proportion, typically expressed as a percentage, that is charged for the use of borrowed money or paid on deposited funds.
Processing Fee
A charge assessed for the processing of a transaction or service, often seen in financial services, applications, and loans.
Bonus
An additional amount of money given to an employee on top of their regular salary, often as a reward for good performance or as part of a special agreement.
- Understand and evaluate offers and terms related to saving accounts and financial investments.
Verified Answer
Learning Objectives
- Understand and evaluate offers and terms related to saving accounts and financial investments.
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