Alberto received an inheritance of $10,000 that he decided to put it into a savings account and collect the interest. He has a choice of investing in one of two plans. The Gold Savings account will allow him to invest his inheritance at 3% simple interest for 4 years. The Student Savings account will allow him to invest his inheritance at 2.75% simple interest for 4 years. As part of a limited time promotion, the bank will give Alberto $1,000 to be added to his principal if he opens a Student Savings account. Which plan will earn Alberto the most money?
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Question

Alberto received an inheritance of $10,000 that he decided to put it into a savings account and collect the interest. He has a choice of investing in one of two plans. The Gold Savings account will allow him to invest his inheritance at 3% simple interest for 4 years. The Student Savings account will allow him to invest his inheritance at 2.75% simple interest for 4 years. As part of a limited time promotion, the bank will give Alberto $1,000 to be added to his principal if he opens a Student Savings account. Which plan will earn Alberto the most money?
Answer