Peter has $20 000 to invest in either Bank A, Bank B or Bank C for 5 years.
The table below shows the investment plans.

Bank	Interest rate per annum
A	3.0 % compound interest, compounded annually
B	3.2 % simple interest annually
C	Fixed interest of $3000 after 5 years

Which plan should he invest in? Explain your answer.

1. Calculate the amount from Bank A using compound interest.

For Bank A,
$\text{Amount}=20000(1+0.03)^5$
$=20000(1.03)^5$
$=\$23185.481\ldots$
So Bank A gives about $\char36{}23185.48$.

2. Calculate the amount from Bank B using simple interest.

For Bank B,
$\text{Interest}=20000\times 0.032\times 5$
$=\$3200$
$\text{Amount}=20000+3200=\$23200$

3. Calculate the amount from Bank C and compare all three plans.

For Bank C,
$\text{Amount}=20000+3000=\$23000$

Compare:
$\$23200>\$23185.48>\$23000$
Therefore, Bank B gives the highest amount.