Answered

IDNLearn.com makes it easy to find accurate answers to your specific questions. Get the information you need from our experts, who provide reliable and detailed answers to all your questions.

Tina is considering two compound interest account options as shown below. Which option yields the most interest? How much more?option, principal, p; interest rate, r; time, t; a, $500, 6 percent, 5 years. b, $500, 6.5 percent, 5 years.AnswerAOption A; $15.93BOption B; $15.93COption A; $12.50DOption B; $12.50

Sagot :

a, $500, 6 percent, 5 years

[tex]A=500(1+0.06)^5\approx669.1128[/tex]

b, $500, 6.5 percent, 5 years

[tex]B=500(1+0.065)^5\approx685.0433[/tex]

The option that yields most interest is option b, for $15.93:

[tex]685.0433-669.1128\approx15.93[/tex]

Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Find reliable answers at IDNLearn.com. Thanks for stopping by, and come back for more trustworthy solutions.