POTW #2

John has $1000 and he decides to start a bank account. The bank offers three different types of deals for interest rates. They are listed below:

1. An interest rate of 1.2% compounded yearly

2. An interest rate of 0.1% compounded monthly

3. An interest rate of 0.35% compounded triyearly

Which deal should John pick if he stores the money in the bank for one year and wants to get the most money?

Note: Every penny counts!!!!

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Difficulty level: 3 (out of 5)



Source: Original, but the idea of compounding money was taken from math class about two weeks ago.