Question

Sebastian is going to deposit $790 in an account that earns 6.8% interest compounded annually his wife Yolanda will deposit $815 in an account that earns 7.2% simple interest each year they deposit the money on the same day and no additional deposits or withdrawals for the accounts which statement is true concerning Sebastian's in Yolanda's account balances after 3 years

Answer 1

Explanation:

Complete question

A) Sebastian's account will have about $28.67 less than Yolanda's account. B) Sebastian's account will have about $9.78 less than Yolanda's account. C) Yolanda's account will have about $28.67 less than Sebastian's account. D) Yolanda's account will have about $9.78 less than Sebastian's account.

For Sebastian

Amount =
`P (1 + (r)/(n))^(nt)`

Substituting the given values we get

A =

`790 (1 + (6.8)/(100*1))^(3*1) \\962.367`

For Yolanda

Amount
`= P(1+rt)`

`A = 815 (1 + (7.2)/(100)*3)\\A = 991.04`

Yolanda's account will have about $28.67 less than Sebastian's account

Option C is correct