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kicyunya [14]
3 years ago
11

Maya will deposit $1,650 in an account that earns 5% simple interest every year. Her brother, James, will deposit $1,600 in an a

ccount that earns 8% interest compounded annually. The deposits will be made on the same day, and no additional money will be deposited or withdrawn from the accounts. Compare and contrast the two siblings' accounts after four year
Mathematics
1 answer:
iogann1982 [59]3 years ago
8 0

Answer:

Step-by-step explanation:

Step one:

given data

Maya

P=$1650

r=5%= 0.05

t= 4 years

The simple interest expression is

A=P(1+rt)

A=1650(1+0.08*4)

A=1650(1+0.32)

A=1650(1.32)

A=1650*1.32

A=$2178

James

P=$1600

r=8%= 0.08

t=4years

The compound interest expression is

A=P(1+r)^t

A=1600(1+0.08)^4

A=1600(1.08)^4

A=1600*1.360

A=$2176

<em>After 4 years Mayas' balance is $2178</em>

<em>After 4 years James' balance is $2176</em>

<em>the difference is =2178-2176=$2</em>

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