John has saved $1000 and is evaluating 2 option for the bank deposits for a period of 5 y

Bank A - Bank A is offering 6% per annum simple interest

Bank B - Bank B is offering 5.5 % per annum compound interest

Can you help john to identify which of the two option is more beneficial for him

Bank A Bank B

P 1000 P 1000
r 0.06 r 0.055
t 5 t 5

Year Interest Year Interest Old P New P

1 60 1 55 1000 1055
2 60 2 58.025 1055 1113.025
3 60 3 61.21638 1113.025 1174.241
4 60 4 64.58328 1174.241 1238.825
5 60 5 68.13536 1238.825 1306.96

Total 1300 Total 1306.96

ank deposits for a period of 5 years

erest

ore beneficial for him