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You have decided to both open a savings account and purchase a vehicle. You would like a savings account with the highest interest rate and a vehicle loan with a low interest rate. You currently have a checking account at Bank A. From the banks listed below, determine with which bank you should open a savings account and at which bank you should apply for your vehicle loan.

\begin{tabular}{|c|c|c|c|}
\hline \multicolumn{2}{|c|}{Loan Rates} & \multicolumn{2}{|c|}{Savings Rates} \\
\hline Bank A & [tex]$5\%$[/tex] & Bank A & [tex]$0.13\%$[/tex] \\
\hline Bank B & [tex]$4.6\%$[/tex] & Bank B & [tex]$0.1\%$[/tex] \\
\hline Bank C & [tex]$5.1\%$[/tex] & Bank C & [tex]$0.11\%$[/tex] \\
\hline
\end{tabular}

a. Bank A for the car loan and Bank B for the savings account

b. Bank C for the car loan and Bank C for the savings account

c. Bank B for the car loan and Bank A for the savings account

d. Bank B for the car loan and Bank B for the savings account



Answer :

GinnyAnswer
To determine the best options for both a savings account and a vehicle loan, we'll follow these steps:

1. Identify the Best Loan Rate:
- Bank A offers a loan rate of 5.0%.
- Bank B offers a loan rate of 4.6%.
- Bank C offers a loan rate of 5.1%.

Among these rates, the lowest loan rate is 4.6% offered by Bank B.

2. Identify the Best Savings Rate:
- Bank A offers a savings rate of 0.13%.
- Bank B offers a savings rate of 0.1%.
- Bank C offers a savings rate of 0.11%.

Among these rates, the highest savings rate is 0.13% offered by Bank A.

3. Conclusion:
- The best bank for the vehicle loan is Bank B, as it offers the lowest loan rate of 4.6%.
- The best bank for the savings account is Bank A, as it offers the highest savings rate of 0.13%.

Given these conclusions, the best choice matching these criteria from the provided options is:

c. Bank B for the car loan and Bank A for the savings account