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shtirl [24]
2 years ago
9

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?
Mathematics
1 answer:
Finger [1]2 years ago
8 0

Answer:

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.

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Let's set it up like this:
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We are then going to use the distributive property. Since we also know that the opposite of an number that is squared is the square root, we can also apply that. We would be left with something like this:
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The variable x can be both positive or negative.
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