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photoshop1234 [79]
3 years ago
7

Classmates Joan, Peta, and Linda each received $400 as graduation gift. Joan deposits her money in an account that earns 7% inte

rest compounded annually and keeps the money in the account for three years. Peta deposits her money, plus an extra $70, in an account that earns 8% interest compounded annually and keeps the money in the account for two years. Linda deposits her money in an account that earns 5% compounded'annually and keeps the money in the account for one year.
Who has more money when they close their accounts and why?

A) Joan, because she kept her money in the longest.
B) Linda, because of her interest rate.
C) Peta, because she invests the most.
D) They all make the same amount.​
Mathematics
1 answer:
Leokris [45]3 years ago
6 0

9514 1404 393

Answer:

  C)  Peta, because she invests the most

Step-by-step explanation:

The additional $70 that Peta invests is equivalent to more than 2 years' interest at either of the other rates. Not only does Peta invest more money, she does so at a higher interest rate.

Peta will have the most money in her account when she closes it.

__

The balances will be ...

  Joan $490.02

  Peta $548.21

  Linda $420.00

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