Miguel deposits $1, 000 into a new savings account that pays 4% simple interest annually. Valeria deposits $1, 000 into a new savings account that pays 4% interest compounded annually. After 4 years, what will be the difference between the interest earned on Miguels $1, 000 deposit and the interest earned on Valerias $1, 000 deposit?

COMPOUND INTEREST

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Miguel deposits $1, 000 into a new savings account that pays 4% simple interest annually. Valeria deposits $1, 000 into a new savings account that pays 4% interest compounded annually. After 4 years, what will be the difference between the interest earned on Miguel’s $1, 000 deposit and the interest earned on Valeria’s $1, 000 deposit?

A	$0.73
B	$9.86
C	$35.14
D	$48.85

Explanation:

There is 1 question to complete.

ECONOMICS (CBSE/UGC NET)

ECONOMICS

COMPOUND INTEREST