Please Help me on the interest? I'm confused?

Question

which one is the best choice for a bank?

a) 15% per 28 hours and collect 2% tax

b) 10% per 12 hours

c) 5% per 4 hours and collect 5% tax

Answer 1

B) Because according to you, choosing this option means that you don't have to collect taxes.

Answer 2

What is this question about? What is the interest being paid on? What kind of tax is being collected? Is this some kind of problem from a textbook or something? It doesn't seem to make any sense. Banks don't usually charge (or pay) interest by the hour -- it's usually by the month or the year.

Please clarify what you're talking about and what you're asking us.

Answer 3

multiply rate ( as a decimal ) X time

Answer 4

I can think of at least three completely different ways to understand this problem. They all lead to very different answers. Are these APYs? Is this compound interest? Is the tax on the principal? The interest? Both?

Answer 5

Hey, interest is really easy to understand , i  work in a Bank and will be happy to teach you, but this looks more like a homework question since it doesnt give u any numbers to go based on , or APY , so based on the % you given , i randomly chose the #100 and did the problems, getting this results

example =

100 x (% given) + tax (if any)

100x .15 = 15         15x .02 = .3 +15 =15.3  for 28 hours

and so forth

a)15.30

b)20.00

c)36.75

i would like to know more information if you know , thanks :)

Answer 6

B