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sergiy2304 [10]
3 years ago
9

A bank offers two special high-interest savings accounts if you deposit $500 and leave it untouched for 10 years. One pays 6 per

cent simple interest. The other pays 5 percent compound interest. Which one is better and why? *
Mathematics
1 answer:
vazorg [7]3 years ago
6 0

Answer:

The compound interest one is better by about 14 bucks.

Step-by-step explanation:

Simple interest:

500(1+.06*10)=800

Compound interest:

500(1+.05)¹⁰=814.45

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