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Serjik [45]
3 years ago
6

Abbie is in high school and saves money from her afterschool job to buy a car after she graduates from college. She wants a new

car but knows it will cost more than $20,000. By her freshman year, she has saved $12,000. Which of the following would most help her have the most money by graduation? A checking account A compound interest account A simple interest account A high risk investment
History
2 answers:
Arte-miy333 [17]3 years ago
8 0

Abbie is in high school and saves money from her afterschool job to buy a car after she graduates from college. She wants a new car but knows it will cost more than $20,000. By her freshman year, she has saved $12,000. Which of the following would most help her have the most money by graduation?

The correct answer is letter B:  A compound interest account.

If you’ve got money in a savings account, your money will grow due to compound interest. Interest is money the bank paid to you as a reward it is a percentage and generally expressed per annum (interest is proportional to the amount of money you have deposited).

Compound interest is a rate that is applied to the principal and any prior interest earned (that's to say interest on interest). So over a period of time, it is very profitable.

lidiya [134]3 years ago
5 0
A compound interest account
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