5. Penny makes deposits into two separate accounts for 5 years: • Option A: $800; 6% annual simple interest • Option B: $800; 6% annual compound interest 6 What is the interest earned on option A? 6 What is the total value on option A? What is the interest earned on option B? @ What is the total value on option B? O Which is the better option?

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section: Chapter Questions
Problem 5P
icon
Related questions
icon
Concept explainers
Topic Video
Question
100%

What would this be? I don't understand.

1
2
3
4
5
6
7
8
10
11
earned interest
5. Penny makes deposits into two separate
accounts for 5 years:
zoom in
?/1
Option A: $800; 6% annual simple interest
Option B: $800; 6% annual compound
interest
6
What is the interest earned on option A?
?/1
The interest earned on Option B is
6 What is the total value on option A?
$270.48
The total value on Option B is $1,070.48
What is the interest earned on option B?
7
Which is the better option?
What is the total value on option B?
?/1
Simple Interest
Which is the better option?
Compound Interest
O O
Transcribed Image Text:1 2 3 4 5 6 7 8 10 11 earned interest 5. Penny makes deposits into two separate accounts for 5 years: zoom in ?/1 Option A: $800; 6% annual simple interest Option B: $800; 6% annual compound interest 6 What is the interest earned on option A? ?/1 The interest earned on Option B is 6 What is the total value on option A? $270.48 The total value on Option B is $1,070.48 What is the interest earned on option B? 7 Which is the better option? What is the total value on option B? ?/1 Simple Interest Which is the better option? Compound Interest O O
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Application of Algebra
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, advanced-math and related others by exploring similar questions and additional content below.
Recommended textbooks for you
College Algebra
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
College Algebra
College Algebra
Algebra
ISBN:
9781337282291
Author:
Ron Larson
Publisher:
Cengage Learning
Functions and Change: A Modeling Approach to Coll…
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning
Elementary Algebra
Elementary Algebra
Algebra
ISBN:
9780998625713
Author:
Lynn Marecek, MaryAnne Anthony-Smith
Publisher:
OpenStax - Rice University
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage