Trisha plans to invest $1,800.00 in a savings account. Savings account 1 earns 6% simple interest and savings account 2 earns 6% interest compounded quarterly. If she plans to deposit the $1,800.00 and leave it in the account for 2 years, in which savings account would she earn more interest?

A.

The interest earned in both savings accounts will be the same.

B.

savings account 2

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Mathematics

2 August, 08:40

Trisha plans to invest $1,800.00 in a savings account. Savings account 1 earns 6% simple interest and savings account 2 earns 6% interest compounded quarterly. If she plans to deposit the $1,800.00 and leave it in the account for 2 years, in which savings account would she earn more interest?

A.

The interest earned in both savings accounts will be the same.

B.

savings account 2

+4

Answers (1)

Know the Answer?

Jorden Colon · Answer 1

Use this formula:

P = Poe^rt

$1,800.000e^ (0.06) (2) = 3,822,611.567563

Well past the 2 years the account will grown from the increase of 6% more so the answer could be B.