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umka21 [38]
2 years ago
15

You have $25,000 to invest. You can find an account (Acount A) that guarantees $925 per year. You also found a simple interest a

ccount (Account B) that pays 6.5 percent annually. Which account will earn more in interest in 5 years? How much more did the account earn?
Mathematics
1 answer:
Sveta_85 [38]2 years ago
8 0
Account A
A=p+i
A=25,000+(925×5)
A=29,625

Account B
A=p(1+rt)
A=25,000×(1+0.065×5)
A=33,125

How much more did the account B earn
33,125−29,625
=3,500

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if the exponent dropping down doesn't make sense to you, you can think of it in another way:

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expand the expression so that the exponent moves in front of the log function:

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