ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Mrs. Coronado deposited $2, 000 in a savings account that pays her interest compounded annually. Mrs. White deposited $3, 500 in a saving account that pays her simple interest. Both ladies are getting the same interest rate of 7.5%, if they both leave their money in the bank for 6 years, which of the following is a true statement?
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Mrs. White will earn $1, 575 more than Mrs. Coronado.
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Mrs. Coronado will earn $1, 988.40 less than Mrs. White.
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Mrs. Coronado will earn $11.60 more than Mrs. White.
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Mrs. White will earn $1, 511.60 less than Mrs. Coronado.
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Explanation:
Detailed explanation-1: -Mrs. Coronado will earn $11.60 more than Mrs. White.
There is 1 question to complete.