Select the fraction with the largest value, 1/5, 1/8, or 3/4
1 answer:
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Answer:
Option D
Step-by-step explanation:
<em>step 1</em>
<em>Account 1</em>
The simple interest formula is equal to
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
substitute in the formula above
<em>step 2</em>
<em>Account 2</em>
The compound interest formula is equal to
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
substitute in the formula above
step 3
Find the difference
therefore
Susie should invest her money in Account 2 because the account will earn $181.47 more interest than Account 1 after 10 years