Question

A bank offers two interest account plans. Plan A gives you 6% interest compound annually. Plan B gives you 13% annual simple interest. You have to invest $2,000 for the next 4 years. Which account earns you the more interest (in dollars) after 4 years? How much will you have earned?

Answer 1

@Xmoses1

Answer 2

What is 6% of $2,000 multiplied by 3? Then add 4 times (4 years)
What is 13% of $2,000? Then add 4 times (4 years)

This tells you how much each account will give you after 4 years, which will be the answer to the first question. Then, based on the answer you get there, figure out how much you made by choosing the account with the greatest net profit.

Answer 3

120
260

Answer 4

umm... Not quite

Answer 5

1456?
1056?

Answer 6

You found that six percent of $2,000 is 120, but then you didn't finish

Answer 7

Yeah it's 1456

Answer 8

@Xmoses1

Answer 9

Ok now the other account

Answer 10

1056