A bank offers two special high-interest savings accounts if you deposit $500 and leave it untouched for 10 years. One pays 6 percent simple interest. The other pays 5 percent co…

Question

asked Oct 2, 2022 179k views

1 Answer

Homen · Answer 1 · 2022-10-06T08:51:20+0000

Answer:

The compound interest one is better by about 14 bucks.

Explanation:

Simple interest:

500(1+.06*10)=800

Compound interest:

500(1+.05)¹⁰=814.45