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Jenny is saving for a vacation to the beach how much more interest will she earn if she invest 300% Four Points 25% compound interest compounded annual for 10 years then if she invest $500 at 4.35% simple interest for 10 years

Respuesta :

simple interest is

[tex]I=Prt=500\cdot0.0435\cdot10=217.5[/tex]

compound interest

[tex]A=P(1+r)^t=300(1+0.25)^{10}=300(1.25)^{10}=300\cdot9.31=2793[/tex]

interest is:

[tex]I=2793-300=2493[/tex]

answer; she earns more with annual compound interest

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