Katie invests $5,000 in an account earning 4% interest, compounded annually for 5 years. Two years after Katie's initial investment, Emily invests $10,000 in an account earning 4% interest, compunded annually for 3 years. Given that no additional deposits are made, compare the amount of interest earned after the interest period ends for each account (round to the nearest dollar)

Question

Elijah Roberts

Mathematics

29 April, 16:34

Katie invests $5,000 in an account earning 4% interest, compounded annually for 5 years. Two years after Katie's initial investment, Emily invests $10,000 in an account earning 4% interest, compunded annually for 3 years. Given that no additional deposits are made, compare the amount of interest earned after the interest period ends for each account (round to the nearest dollar)

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Tiny · Answer 1

The first one is $6, 083.26

the second account earns 11,248.64

Compare: The first account made ~6,083 dollars

The second account made ~11,249. The second account has more in 3 years than the first one did in 5 years.