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

Mathematics

Asia Reyes

7 March, 06:16

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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Braedon Cantu · 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.