Question

Ismenia is starting a savings account. Savings account A will start at $10,000 and accrue interest at 4%

each year. Savings account B will start at $12,000 and accrue $600 of interest each year. Which account
is best for long term investmen

Answer 1

Savings Account A annual interest = 4% * 10000 which is equal to $400. Therefore principal is $10000 with accumulated interest of $400 annually for savings account A.

Savings Account B has $600 interest annually with a principal of $12000

Interest of $600 > $400 therefore savings option B is best for long term investment.