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rodikova [14]
3 years ago
5

Julia and Rodney decided to invest 15% of their salaries.The table shows their principal balance,interest rate,and type of inter

est.Based on the table,what is the sum of the interest they earned after 3 years?
*Imagine the table like this*
They both have $4500 as their principal balance.One of them has their interest type as compounded annually and the other is simple interest.The interest rate for both is 6%.

A- $1669.57
B- $4050
C- $1620
D- $4368.94
Mathematics
1 answer:
Masja [62]3 years ago
6 0
On the account with interest compounded annually, the account balance will be
  P*(1 +r)^t
  4500*1.06³ = 5358.57
so the interest earned will be
  5358.57 -4500 = 859.57

On the account with simple interest, the interest earned will be
  I = Prt
  I = 4500*.06*3
  I = 810.00

The total interest earned on the two accounts will be
  $859.57 +810.00 = $1669.57 . . . . . . . . selection A
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