Ryan deposits $775 in an account that pays 1.24% simple interest for 4 years.
Brian deposits $775 in an account that pays 1.24% simple interest for 1 year.
a. What is Ryan’s interest after the 4 years?
b. What is Ryan’s balance after 4 years?
c. How much interest did Ryan’s account earn the first year?
d. How much interest did Ryan’s account earn the fourth year?
e. What is Brian’s interest after the first year?
f. What is Brian’s balance after the first year?
g. Suppose Brian withdraws all of the principal and interest after the first year and deposits it into another 1-year account at the same rate. What is his interest for the second year? Round to the nearest cent.
h. Compare the interest Brian earns with the interest Ryan earns for the second year. Who earned more interest? Explain.