Ask Question
BusinessBusiness
19 February, 12:20

Compare the following accounts. Which account will earn more money in interest? Account 1 earns 1.2 percent, compounded yearly. Account 2 earns 1 percent, compounded yearly. Account 3 earns 1.2 percent, compounded monthly. Account 4 earns. 5 percent, compounded monthly.

+5
Answers (1)
  1. 19 February, 12:35
    0
    Hello!

    The answer is: Account 3 earns 1.2 percent, compounded monthly.

    Why?

    We are talking about how many money will be earned in interested, which means that the higher percentage in a shorter period of time will earn a higher amount of money.

    So, let's check the given options:

    Account 1: Earns 1,2 percent compounded yearly, it means just 0,1 percent each month.

    Account 2: Earns 1 percent compounded yearly, it means 0,08 percent each month.

    Account 3: Earns 1,2 percent compounded monthly and it means 14,4 percent each year.

    Account 4: Earns 0,5 percent compounded monthly, which means 6 percent per year.

    So, the account 3 will earn more money in interest.

    Have a nice day!
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Compare the following accounts. Which account will earn more money in interest? Account 1 earns 1.2 percent, compounded yearly. Account 2 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
In making and marketing tools and other do-it-yourself home maintenance products, do-it-rite corporation, like other sellers, is required to take precautions against
Answers (1)
Eighty percent of your business comes from 20% of your Question 7 options: effort. personal referrals. years in business. customers.
Answers (2)
A two-year degree that focuses on the arts, humanities, and social sciences is called a (n) :
Answers (2)
A random survey of 20 adults coming out of subway stations in New York City revealed that 16 considered owning a car to be of little importance. Clearly, 80% of Americans don't care much about owning cars."
Answers (1)
How much money do a bank make daily
Answers (1)
New Questions in Business
What causes a change in the demand curve or a shift
Answers (2)
Glenda, a sales representative for revo appliances inc., had to deliver a presentation on her company's latest offering: an innovative food processor. her target clients were senior managers and chefs from a reputed restaurant.
Answers (1)
To discover the extent to which economic status can be used to predict political preferences?
Answers (1)
In the current year, Mitchell Manufacturing expected Job No. 13 to cost $600,000 of overhead, $650,000 of materials, and $400,000 of labor. Mitchell applied overhead based on direct labor cost.
Answers (1)
Cullumber Company has issued three different bonds during 2019. Interest is payable annually on each of these bonds. 1. On January 1, 2019, 1,000, 6%, 5-year, $1,000 bonds dated January 1, 2019, were issued at face value. 2.
Answers (1)
Home » Business » Compare the following accounts. Which account will earn more money in interest? Account 1 earns 1.2 percent, compounded yearly. Account 2 earns 1 percent, compounded yearly. Account 3 earns 1.2 percent, compounded monthly. Account 4 earns.
Sign Up Forgot Password?