## Exam-Style Question on Finance## A mathematics exam-style question with a worked solution that can be revealed gradually |

Question id: 183. This question is similar to one that appeared on a GCSE Higher paper (specimen) for 2017. The use of a calculator is allowed.

Here are the details for two bank accounts.

Dayter Bank

2% per year compound interest.

No withdrawals until the end of three years.

Rivver Bank

3% interest for the first year

2% for the second year

1% for the third year.

Withdrawals allowed at any time.

Saviour has £2000 he wants to invest.

(a) Calculate, to the nearest penny, which bank would give him most money if he invests his money for 3 years.

(b) Explain why he might not want to use Dayter Bank.

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