Lakelyn has $2,500.00 to invest in a savings account. Savings account 1 earns 4% simple interest and savings account 2 earns 4%
interest compounded annually. If she plans to deposit the $2,500.00 and leave it in the account for 1 year, in which savings account would she earn more interest?
Let’s go back to the savings account example above. We started with $10,000 and ended up with a little more than $500 in interest after 10 years in an account with a 0.50% annual yield.
Step-by-step explanation:
Let’s go back to the savings account example above. We started with $10,000 and ended up with a little more than $500 in interest after 10 years in an account with a 0.50% annual yield.
You can write this in a proportion way: 6/55 = x/44. Multiply both sides by 11 to get rid of the 55 and 44: 6/5 = x/4 Now, multiply both sides by 20: 5x = 24. x = 4.8
