Bella received $1,200 after winning a national mathematics competition.   She plans to invest this money for 5 years.

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter2: Solving Linear Equations
Section2.2: Use A Problem Solving Strategy
Problem 2.53TI: Eduardo noticed that his new car loan papers stated that with a 7.5% simple interest rate, he would...
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Bella received $1,200 after winning a national mathematics competition.
 
She plans to invest this money for 5 years.
 
Her bank offers 2 different saving options:
 
 
Option A: Customers receive a simple interest rate of 7.8%. 
How much money will be in Bella's account after 5 years if she chooses option A?
 
$
 
 
 
Option B: Customers receive compound interest of 7.2%.
How much money will be in Bella's account after 5 years if she chooses option B?
 
$
 
 
 
If you are a customer adviser, which option would you recommend to Bella?
Option A
Option B
 
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