Martha is planning on opening a savings account with $12,000.00 to save for her daughter's college expenses. Martha's bank has two different savings account options available for her to choose from.

Option 1 offers an account that pays 5% simple interest.

Option 2 offers an account that pays 4% interest compounded annually.

Since Martha's daughter is currently in 7th grade, she plans on leaving the money in the account for five years. Which of the following best describes Martha's options?

Question

Martha is planning on opening a savings account with $12,000.00 to save for her daughter's college expenses. Martha's bank has two different savings account options available for her to choose from. 

Option 1 offers an account that pays 5% simple interest.

Option 2 offers an account that pays 4% interest compounded annually.

Since Martha's daughter is currently in 7th grade, she plans on leaving the money in the account for five years. Which of the following best describes Martha's options?

anonymous · Answer

may you help me with the fiona question

aq99 · Answer

A.By choosing Option 2 she will have earned $361.70 less in interest.   
B.By choosing Option 2 she will have earned $600.00 less in interest.   
C.By choosing Option 1 she will have earned $400.17 more in interest.  
D.By choosing Option 1 she will have earned $416.17 more in interest.

aq99 · Answer

@yeet21  sure