Question

Jaylen will deposit $1,750 in an account that earns 6% simple interest every year. His best friend, Eli, will deposit $1,600 in an account that earns 8.5% interest compounded annually. The deposit will be made on the same day, and no additional money will be deposited or withdrawn from the accounts. Compare and contrast the two friends’ account after 5 years

Answer 1

Answer:

Jaylen- 2275

Eli- 2405.85

Jaylen

1750 x 0.06 x 5 =525

525 + 1750 = 2275

He makes 525 simple interest in those 5 years so you add that to the initial amount, to find his total after 5 years.

Eli

A= 1600(1+0.085)^5

1600(1.085)^5

2405.85

Hope this helps ^-^