Question

Question 1

Answer 1

Answer:

I do not agree with Noah.

Step-by-step explanation:

A bank account that earns 1% interest each month has  a balance of $1,500.

Now, any interest is deposited into the account, and no further deposits or withdrawals are  made.

So, we can assume that the interest is compounded every month.

Therefore, after 2 months the balance in the account will be

$1500(1 + \frac{1}{100})^{2} = 1530.15$ dollars.

If the interest was to be applicable in simple interest then the balance in the account after 2 months would have been $1530.

Therefore, I do not agree with Noah. (Answer)