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Andreyy89
3 years ago
5

Penny makes deposits into two separate

Mathematics
1 answer:
denis-greek [22]3 years ago
6 0

Answer:

A) P = 240

B) P + Po = 1040

C) P = 270.58

D) P+Po = 1070.58

E) Option B (compound interest) is better, as it generates more interest for the same inicial value, rate of interest and time

Step-by-step explanation:

The formula for simple interest is:

P = Po*r*t

Where P is the interest earned, Po is the inicial value, r is the rate of interest and t is the time.

The formula for compound interest is:

P+Po = Po*(1+r)^t

So we have that:

A) P = 800*0.06*5 = 240

B) P + Po = 800 + 240 = 1040

C) P+Po = 800*(1+0.06)^5 = 1070.58 -> P = 1070.58 - 800 = 270.58

D) P+Po = 1070.58

E) Option B (compound interest) is better, as it generates more interest for the same inicial value, rate of interest and time

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