Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Are these correct? What is the total interest for each year? Amanda deposits $80,000 into an account that pays 6% interest per year, compounded annually
Are these correct? What is the total interest for each year?
Amanda deposits $80,000 into an account that pays 6% interest per year, compounded annually Sam deposits $80,000 into an account that also pays 6% per year. But it is simple interest. Find the interest Amanda and Sam earn during each of the first three years. Then decide who earns more interest for each year. Assume there are no withdrawals and no additional deposits Year Interest Amanda earns (Interest compounded annually) Interest Sam earns (Simple interest) Who earns more interest? First S4,800 $4,800 Amanda earns more. Sam earns more. They earn the same amount. Amanda earns more. Sam earns more. They earn the same amount. Second $5,088 $4,800 Third $5,188.80 $4,800 Amanda earns more Sam earns more. They earn the same amount Continue 20:20 MCGH Education ArredamStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started