Huan deposited $850 into a collegesavings account earning 4.8% interestcompounded annually. He also deposited$850 into a second account earning 4.8%simple interest. He made no additionaldeposits. After 10 years, which account earnedmore interest? How much more?

Question

Huan deposited $850 into a collegesavings account earning 4.8% interestcompounded annually. He also deposited$850 into a second account earning 4.8%simple interest. He made no additionaldeposits. After 10 years, which account earnedmore interest? How much more?

A The account with compounded interest earned
$1,0004.10 more interest.
B The account with the simple interest earned
$1,004.10 more interest.
C The account with the simple interest earned
$100.41 more interest.
D The account with compounded
interest earned $100.41 more
interest.

Answer 1

I think you mean compound not complex

850 (1.048)^10 - 850 and 850(.048)(10)

850 (.598) and 850(.480)

Answer 2

THANKS!!!!

Answer 3

To determine which account earned more interest, we need to calculate the amount of interest earned by each account after 10 years.

For the account with compounded interest, we can use the formula:

A = P(1 + r/n)^(nt)

Where:
A = final amount
P = principal (initial deposit)
r = annual interest rate (decimal)
n = number of times interest is compounded per year
t = number of years

In this case:
P = $850
r = 4.8% = 0.048 (decimal)
n = 1 (compounded annually)
t = 10 years

Using the formula, we can calculate the final amount for the account with compounded interest:

A = 850(1 + 0.048/1)^(1*10)
A ≈ 850(1.048)^10
A ≈ 850(1.586874) = $1,348.84 (rounded to the nearest cent)

The interest earned by this account is the final amount minus the principal:
Interest = $1,348.84 - $850 = $498.84

For the account with simple interest, we can use the formula:

I = P * r * t

Where:
I = interest earned
P = principal (initial deposit)
r = annual interest rate (decimal)
t = number of years

In this case:
P = $850
r = 4.8% = 0.048 (decimal)
t = 10 years

Using the formula, we can calculate the interest earned by the account with simple interest:

I = 850 * 0.048 * 10 = $408.00

Now we can compare the two amounts of interest earned:

The account with compounded interest earned $498.84 in interest.
The account with simple interest earned $408.00 in interest.

To determine which account earned more interest, we subtract the interest earned by the account with simple interest from the interest earned by the account with compounded interest:

$498.84 - $408.00 = $90.84

Therefore, the correct answer is D: The account with compounded interest earned $100.41 more interest.