Ask Question
BusinessBusiness
22 October, 04:47

Andy deposited $3,000 this morning into an account that pays 5 percent interest, compounded annually. Barb also deposited $3,000 this morning at 5 percent interest, compounded annually. Andy will withdraw his interest earnings and spend it as soon as possible. Barb will reinvest her interest earnings into her account. Given this, which one of the following statements is true? Select one: a. Barb will earn compound interest b. Barb will earn more interest the first year than Andy will c. Barb will earn interest on interest d. After five years, Andy will have more money in his account than Barb e. Andy will earn more interest the first year than Barb will

+4
Answers (1)
  1. 22 October, 07:30
    0
    Barb will earn interest on interest yes because she don't retire the interest

    Explanation:

    a. Barb will earn compound interest both will aearn compound interest.

    b. Barb will earn more interest the first year than Andy both are compound annualy. The first year both will earn the same amount of interest.

    c. Barb will earn interest on interest yes because she don't retire the interest and reinvest it.

    Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan

    d. After five years, Andy will have more money in his account than Barb. No because he spend his interest.

    e. Andy will earn more interest the first year than Barb both are compound annualy. The first year both will earn the same amount of interest.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Andy deposited $3,000 this morning into an account that pays 5 percent interest, compounded annually. Barb also deposited $3,000 this ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Why does the government carefully monitor horizontal mergers?
Answers (1)
Walgreens Boots Alliance, Inc. reported inventories of $8,678 million and $6,076 million in its August 31, 2015, and August 31, 2014, balance sheets, respectively. Cost of goods sold for the year ended August 31, 2015, was $76,520 million.
Answers (1)
Fusaro Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year.
Answers (1)
Collision on city streets are largely at intersections because of
Answers (1)
Can there be constant returns to scale in an industry with an upward-sloping supply curve? Explain. Constant returns to scale with an upward-sloping long-run industry supply curve A.
Answers (1)
New Questions in Business
Suppose that due to a poor economy, 1 million workers lost their jobs, causing the unemployment rate to increase to 10%. After a few months of searching, 300,000 of these unemployed workers give up looking for work.
Answers (1)
Which of the following statements is true about skill-based pay? A. Skill-based pay provides a way to ensure that employees can use their new skills. B. Gathering market data about skill-based pay is easy. C.
Answers (1)
What does SMART stand for in terms of Business Aims and objectives
Answers (1)
Is it legal for south African firms to collude with one another to set prices, provide some evidence in support of your answer
Answers (1)
If berkeley shirtmakers ties compensation directly to output by paying an employee a certain amount for each unit of output produced, it is using
Answers (1)
Home » Business » Andy deposited $3,000 this morning into an account that pays 5 percent interest, compounded annually. Barb also deposited $3,000 this morning at 5 percent interest, compounded annually.
Sign Up Forgot Password?