Problem 6: You are trying to explain to a friend the power of compound interest. So you use the following example: You will invest $500 into two bank accounts which each pay 6% interest per year, but the first (Account A) pays simple interest and the second (Account B) pays the interest compounded yearly. a) How much is in each account after 3 years? b) Use the table below to demonstrate the difference between simple and compound interest BANK ACCOUNT A Amount in Account $500 BANK ACCOUNT B Amount in Account $500 Year Year 1 3 3 2.
Problem 6: You are trying to explain to a friend the power of compound interest. So you use the following example: You will invest $500 into two bank accounts which each pay 6% interest per year, but the first (Account A) pays simple interest and the second (Account B) pays the interest compounded yearly. a) How much is in each account after 3 years? b) Use the table below to demonstrate the difference between simple and compound interest BANK ACCOUNT A Amount in Account $500 BANK ACCOUNT B Amount in Account $500 Year Year 1 3 3 2.
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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