Question

Laurent saves money from his lawn service to buy a new $20,000 mower and trailer. He would like to buy the new equipment as soon as possible but only has $12,000 in his simple interest savings account. To reach his goal sooner, Laurent should

Answer 1

Laurent should invest in compound interest account.

Step-by-step explanation:

Compound growth helps the assets rise quicker although interest is based on the accrued interest charges and also on the initial principal. Compound interest will produce a domino affect, when the initial money plus the profits received from those contributions expand together.