Question

@rebeccaxhawaii
Could you help with this question?
Ashley and Elise each deposited $1500 into separate accounts. Each account earned 4% interest over 8 years. At the end of 8 years, Elise had earned more than Ashley. Why?

A.
Elise earned compound interest, and Ashley earned simple interest.

B.
Elise earned simple interest, and Ashley earned compound interest.

C.
Elise had a different interest rate than Ashley.

D.
Elise invested for a different amount of time than Ashley.

Answer 1

@gottennis121 ?

Answer 2

What's your educated guess?

Answer 3

I'm guessing C

Answer 4

I disagree, they earned the same amount. What is simple interest? What is compound interest?

Answer 5

Well it couldn't be D because it does not make sense so you could cross out D process of elimination is a good way to come up with the correct answer

Answer 6

compound is like the added principal to a loan? and simple is like determined by multiplying the given numbers

Answer 7

I did think it was D either :)

Answer 8

*didn't

Answer 9

Correct, so you're left with A and B.
In compound, you earn more, resulting to more money, and Elise had more than Ashley, so what do you think the answer is?

Answer 10

A?

Answer 11

Yup! :)

Answer 12

Thank you both! :D

Answer 13

You're welcome sorry I couldn't help as much:( but you're very welcome:)

Answer 14

No problem! :D