Huan deposited $850 into a college

savings account earning 4.8% interest
compounded annually. He also deposited
$850 into a second account earning 4.8%
simple interest. He made no additional
deposits. After 10 years, which account earned more 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.

I know the answer has to be A or D...but I can't really figure it out. Am I right and if I am show me how to solve this. Thanks in advance!

Didn't you get an answer last time:

http://www.jiskha.com/display.cgi?id=1416267535

Oops probably forgot to check it. Thanks MathMate!

No problem!

To determine which account earned more interest, let's calculate the interest earned by each account and compare the results.

First, let's calculate the interest earned by the account with compounded interest using the formula for compound interest:

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

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

For the account with compounded interest:
P = $850
r = 4.8% (or 0.048 as a decimal)
n = 1 (annual compounding)
t = 10 years

Plugging in these values into the formula, we get:
A = 850(1 + 0.048/1)^(1*10)
A = 850(1 + 0.048)^10
A ≈ $1,290.10

The account with compounded interest earned approximately $1,290.10.

Now, let's calculate the interest earned by the account with simple interest using the formula:

Simple Interest = P * r * t

For the account with simple interest:
P = $850
r = 4.8% (or 0.048 as a decimal)
t = 10 years

Plugging in these values into the formula, we get:
Simple Interest = 850 * 0.048 * 10
Simple Interest = $408

The account with simple interest earned $408.

To find out which account earned more interest, we subtract the interest earned by the simple interest account from the interest earned by the compounded interest account:

$1,290.10 - $408 ≈ $882.10

Therefore, Option A is the correct answer. The account with compounded interest earned $1,000.10 more interest than the account with simple interest.