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3 years ago

Savings account A has $500 and pays 4% interest yearly. Savings account B

Mathematics

1 answer:

alexandr402 [8]3 years ago

3 0

Answer:

The first one.

Step-by-step explanation:

Lets calculate the interest after one year.

1) 500 * (1.04) = 520

2) 600 * (1.025) = 615.

As you can tell the first one earned 20 dollars in the first year while the second one earned 15 dollars in the same year. This means that the first one has earned more interest.

Hope this helps.

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