Question 1
FinanceOmar has £3000 which he will invest for 3 years. He is considering two options.
| Savings account | Stocks and shares ISA |
|---|---|
| Interest rate of 2.5% per annum | 3 year investment guaranteed £80 interest for every £1000 invested |
Determine which option will have the greater value after 3 years. Use your working to justify your answer.
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Savings account: £3230.67
Stocks and shares ISA: £3240
The Stocks and shares ISA will have the greater value since £3240 > £3230.67.





