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

• Plan A; $524.95
• Plan B; $524.95
• Plan B; $1,040.00
• Plan A; $1,040.00
my answer is B check my work

Question

A bank offers two interest account plans. Plan A gives you 6% interest compounded annually. Plan B gives you 13% annual simple interest. You plan to invest $2,000 for the next 4 years. Which account earns you the most interest (in dollars) after 4 years? How much will you have earned?  

•	 Plan A; $524.95 
•	 Plan B; $524.95 
•	 Plan B; $1,040.00
•	 Plan A; $1,040.00
my answer is B check my work

anonymous · Answer

@rational can you help

anonymous · Answer

yes, you are right 
simple interest=P*R*T where P=2000,R=13% and T=4
by solving 
s.i=2000X13\100X4=1040