1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Studentka2010 [4]
3 years ago
8

4. Two savings accounts each start with a $200 principal and have an interest rate of 5%. One account earns simple interest and

the other is compounded annually. Which account will earn more interest over 10 years? How much more?​
Mathematics
1 answer:
slega [8]3 years ago
6 0

Answer:

The compounded annually account will earn more interest over 10 years

Step-by-step explanation:

The rule of the simple interest is I = Prt, where

  • P is the original value
  • r is the rate in decimal
  • t is the time

The rule of the compounded interest is A = P(1+\frac{r}{n})^{nt}, where

  • A is the new value
  • P is the original value
  • r is the rate in decimal
  • n is the number of periods
  • t is the time

The interest I = A - P

∵ Each account start with $200

∴ P = 200

∵ They have an interest rate of 5%

∴ r = 5% = 5 ÷ 100 = 0.05

∵ One account earns simple interest and the other is compounded  

   annually

∴ n = 1 ⇒ compounded annually

∵ The time is 10 years

∴ t = 10

→ Substitute these values in the two rules above

∵ I = 200(0.05)(10)

∴ I = 100

∴ The simple interest = $100

∵ I = A - P

∵ A = 200(1+\frac{0.05}{1})^{1(10)}

∴ A = 325.7789254

∵ I = 325.7789254 - 200

∴ I = 125.7789254

∴ The compounded interest = $125.7789254

∵ The simple interest is $100

∵ The compounded interest is $125.7789254

∵ $125.7789254 > $100

∴ The compounded annually account will earn more interest

   over 10 years

You might be interested in
Math Help? Please! : )
Ray Of Light [21]
1/2 is the probability, or 50%. There are 4 teams of S and B n the Y, 2 are B. so its 2/4
5 0
3 years ago
There is 3 4 of an apple pie left from dinner. Tomorrow, Victor plans to eat 1 4 of the pie that was left. Enter how much of the
lora16 [44]

Answer:

3/16

Step-by-step explanation:

Let the size of the whole apple be T

Given that 3/4 of the apple is left, it means the size left

= 3T/4

Since Victor plans to eat 1/4 of the pie that was left, this amounts to

1/4 * 3T/4

= 3T/16

This means that Victor will eat 3/16 of the whole pie tomorrow

5 0
3 years ago
Jose graphed the amount of money paid in relation to the number of avocados bought. Which stamens best describes the unit rate f
aev [14]

Answer:

c \: 5dollar \: each

6 0
3 years ago
Read 2 more answers
Help me ill give u 11 points if u do this for me !!!
zepelin [54]

Answer:

I believe it's the third and fourth answers.

Step-by-step explanation:

3 0
3 years ago
Find the area of a circle with a diameter of 1.5 m.<br><br><br> 4.71 m2<br><br><br> 1.77 m2
nikdorinn [45]
I hope this helps you



radius=diameter/2



radius=1,5/2


radius=0,75


Area=pi. r^2


Area=3,14. (0,75)^2


Area=1,76
7 0
3 years ago
Other questions:
  • Numbers like 10 100 1000 and so on are called
    11·2 answers
  • Find the percent change from the first value to the second.<br><br> 50;36
    6·1 answer
  • If your playing a game and get 15 coins 30 minutes. How many coins will you get in 1 hour and 40 minutes?
    10·1 answer
  • Find the values of the variables
    5·1 answer
  • A man's age is three years less than 4 times the age of his oldest daughter. What is age of his daughter
    7·1 answer
  • WILL GIVE BRAINLIEST! Please answer both questions
    15·1 answer
  • Help please I do not get it
    6·1 answer
  • Ethan has 3 pounds of nuts .How many ounces of mixed nuts does Ethan have
    8·1 answer
  • I accedently made this so uea WOOO
    14·1 answer
  • Which statement is most likely to be true for this distribution?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!