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 8% interest for the first year, 8% 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 12% interest in the first year and then 8% in the second and third year.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) The offer of bank 2 becomes relatively more attractive as the size of your initial deposit is larger.
B) Bank 2 offers a better deal than bank 1.
C) Bank 1 offers a better deal than bank 2.
D) The two offers are equally valuable.
E) None of the above.