5. Paula finds out the interest rates offered by three banks. She has $$ € 1200 $$ to invest. (i) Which bank offers the best rate? (ii) To get the best rate, how long should she leave her money in the bank? (iii) Which bank would you choose? Justify your answer.

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To answer your questions, we need to know the interest rates and terms offered by the three banks. Since you haven't provided that information, I will outline how to approach the problem once you have the necessary data.

### (i) Which bank offers the best rate?
To determine which bank offers the best interest rate, compare the annual interest rates provided by each bank. The bank with the highest interest rate is the one that offers the best rate.

### (ii) To get the best rate, how long should she leave her money in the bank?
The duration for which Paula should leave her money in the bank to maximize her returns depends on the type of interest (simple or compound) and the specific terms of the bank offering the best rate.

- **For simple interest**, the formula is:
  $$
  A = P(1 + rt)
  $$
  where $$ A $$ is the amount of money accumulated after n years, including interest, $$ P $$ is the principal amount (the initial amount of money), $$ r $$ is the annual interest rate (decimal), and $$ t $$ is the time the money is invested for in years.

- **For compound interest**, the formula is:
  $$
  A = P(1 + r/n)^{nt}
  $$
  where $$ n $$ is the number of times that interest is compounded per year.

You would need to check the terms of the bank with the best rate to see if there are any minimum investment periods or penalties for early withdrawal.

### (iii) Which bank would you choose? Justify your answer.
To choose a bank, consider the following factors:

1. **Interest Rate**: The higher the rate, the better the return on investment.
2. **Type of Interest**: Compound interest generally yields more than simple interest over time.
3. **Investment Duration**: Some banks may require a minimum duration to get the advertised rate.
4. **Fees and Penalties**: Check if there are any fees for account maintenance or penalties for early withdrawal.
5. **Reputation and Security**: Consider the bank's reputation and the security of your investment.

Once you have the specific rates and terms from the three banks, you can apply this reasoning to make an informed choice. If you provide the interest rates and terms, I can help you analyze them further!
To find the best bank, compare the interest rates and terms. Consider the type of interest, investment duration, fees, and reputation.

5. Paula finds out the interest rates offered by three banks. She has \( € 1200 \) to invest. (i) Which bank offers the best rate? (ii) To get the best rate, how long should she leave her money in the bank? (iii) Which bank would you choose? Justify your answer.

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