A bank offers a Loyal Saver account to the customers who deposit between £3000 and £4000 at the start of every year for at least 10 years. The account will pay 7% pa (compounded) tax free, i.e., the customers will not have to pay any income tax on the interest earned. Amy opens a Loyal Saver account for 13 years and is going to make a deposit of £3,500 every year. Sam opens a Loyal Saver account for 13years as well, but plans to make the first seven deposits of £3800 and the last six deposits of £3200. Who will have more money in the account at the end of the 13th year？
A bank offers a Loyal Saver account to the customers who deposit between £3000 and £4000 at the start of every year for at least 10 years. The account will pay 7% pa (compounded) tax free, i.e., the customers will not have to pay any income tax on the interest earned. Amy opens a Loyal Saver account for 13 years and is going to make a deposit of £3,500 every year. Sam opens a Loyal Saver account for 13years as well, but plans to make the first seven deposits of £3800 and the last six deposits of £3200. Who will have more money in the account at the end of the 13th year？
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 8DQ
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Q)A bank offers a Loyal Saver account to the customers who deposit between £3000 and £4000 at the start of every year for at least 10 years. The account will pay 7% pa (compounded) tax free, i.e., the customers will not have to pay any income tax on the interest earned. Amy opens a Loyal Saver account for 13 years and is going to make a deposit of £3,500 every year. Sam opens a Loyal Saver account for 13years as well, but plans to make the first seven deposits of £3800 and the last six deposits of £3200. Who will have more money in the account at the end of the 13th year？
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