Which bank should cameron patronize?

Cameron should patronize bank 2 because they have the lowest average interest rate on loans

Explanation:

Cameron average deposit = $25000

Cameron loan = $250000

Bank 1:  

interest on Cameron deposit is = 3% of $25000 = 0.03 * 25000 = $750

interest charged on  loan = 6.5% of $250000 = 0.065*250000 = $16250

Bank 2

interest on deposit = 1% of $25000 = 0.01*25000 = $250

interest on loan = 2.5% of $250000 = 0.025% * 250000 = $6250

Bank 3

interest on deposit = 7% of $25000 = 0.07 * 25000 = $1750

interest on loan = 7% of $250000 = 0.07 * 250000 = $17500

Bank 4

interest on deposit = 5.5% of $25000 = 0.055 * 25000 = $1375

interest on loan = 5% of $250000 = 0.05 * 250000 = $12500

we can see from our calculations that although Bank 2 offers the least interest on deposit they also offer the least charge on loan therefore making it easier for Cameron to pay off his loan easier and faster because the difference between the deposit interest and the interest charged on loan is the least as well

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