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21 October, 15:31

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.

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  1. 21 October, 18:04
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    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!
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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.
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