Donna deposits $20,000 into an account that pays simple interest at a rate of 4% per year. Tony deposits $20,000 into an account that also pays 4% per year. But it is compounded annually. Find the interest that Donna and Tony earn during each of the first three years. Then decide who earns more interest for each year. Assume there are no withdrawals and no deposits.

Donna deposits $20,000 into an account that pays simple interest at a rate of 4% per year. Tony deposits $20,000 into an account that also pays 4% per year. But it is compounded annually. Find the interest that Donna and Tony earn during each of the first three years. Then decide who earns more interest for each year. Assume there are no withdrawals and no deposits.

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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