+0  
 
0
64
1
avatar

Lucas must decide how to invest $4,000. He can deposit the money in a savings account that pays a simple interest rate 5 1/4% annually, or Lucas can deposit the money in a CD account paying 4 1/2% compound in the account balances after 7 years?

Guest Mar 7, 2017
Sort: 

1+0 Answers

 #1
avatar+75333 
0

At simple interest

 

A = 4000 + 4000(.0525)(7)   = 4000 +1470  = $5470

 

At compound interest

 

A = 4000(1 + .045)^7  =   $5443.45

 

 

cool cool cool

CPhill  Mar 7, 2017

11 Online Users

avatar
avatar
We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.  See details