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PIT_PIT [208]
3 years ago
12

5 Susie wants to deposit $6,000 into a savings account and plans to leave her money in the account for 10 years. The bank offers

two types of savings accounts.
● Account 1: offers 4.5% simple interest
● Account 2: offers 4% interest compounded annually
Which statement about the savings accounts is true?
A Susie should invest her money in Account 1 because the account will earn $300.00 more in interest than Account 2 after 10 years.
B Susie should invest her money in Account 1 because the account will earn $436.35 more in interest than Account 2 after 10 years.
C Susie should invest her money in Account 2 because the account will earn $617.82 more in interest than Account 1 after 10 years.
D Susie should invest her money in Account 2 because the account will earn $181.47 more in interest than Account 1 after 10 years.
History
2 answers:
lord [1]3 years ago
6 0

Answer:

D

Explanation:

charle [14.2K]3 years ago
5 0
Option D

Step 1

Account 1
The simple interest formula is equal to
A = P(1 + rt)

A is the final investment value
P is the principal amount of money to be invested
r is the rate of interest
t is the number of time periods
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