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

Question

3 years ago

9

cent simple interest. The other pays 5 percent compound interest. Which one is better and why? *

1 answer:

vazorg [7] · Answer 1 · 2022-10-11T15:58:01+03:00

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