Bank 1 Offers a Deal on Deposits of $1,000 or More.You

Bank 1 offers a deal on deposits of $1,000 or more.You must leave your money in the bank for three years, but bank 1 will pay you 4% interest for the first year, 4% interest for the second year, and 7% interest for the third year.In response, bank 2 offers a deal that it claims is even better.It also requires you to deposit at least $1,000 and to leave it in the bank for three years, but it will pay 7% interest in the first year and then 4% in the second and third years.After three years, you can take your money out of either bank and do what you want with it.Both banks compound interest annually.

A) Bank 2 offers a better deal than bank 1.
B) Bank 1 offers a better deal than bank 2.
C) The two offers are equally valuable.
D) The offer of bank 2 becomes relatively more attractive as the size of your initial deposit is larger.
E) None of the above.