Simple & Compound Interest (Team Food)

Question 1:
You want to take a loan from Bank ABC, which offers 2 simple interest loan schemes (@ $6\%$ per annum).

• Loan Scheme A: calculated annually
• Loan Scheme B: calculated monthly

Which simple interest loan scheme (A or B) has a lower interest or are they the same?
Explain how you arrive at your answer.


Question 2:
You want to take a loan from Bank XYZ, which offers 2 compound interest loan schemes (@ $6\%$ per annum).

• Loan Scheme X: calculated annually
• Loan Scheme Y: calculated monthly

Which compound interest loan scheme (X or Y) has a lower interest or are they the same?
Explain how you arrive at your answer.