ECONOMICS
COMPOUND INTEREST
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Rosalinda wants to save money for college. She wants to invest $1000 with the bank that will maximize her savings. She finds out that both Washington Mutual and Compass Bank offer accounts that pay at a rate of 3%. However, Washington Mutual offers a simple interest account with a maximum time period of 4 years while Compass Bank offers a compound interest account with a maximum time period of 3 years. What is the difference in the amount of interest each account pays?
|
|
$27.28
|
|
|
$92.72
|
|
|
$120
|
|
|
$972.72
|
Explanation:
There is 1 question to complete.