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?

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
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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
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