Question

Logan and Rita each open a savings
account with a deposit of $8,100. Logan's
account pays 5% simple interest annually.
Rita's account pays 5% interest
compounded annually. If Logan and Rita
make no deposits or withdrawals over the
next 4 years, what will be the difference in
their account balances?

Answer 1

Answer: 134. 89 $

Step-by-step explanation: Dina wishes to 1000$ deposit  into an investment account and then withdraw the total in the account in five years. She has the choice of two different accounts. Blue Star account: interest is earned at an annual interest rate of 6.13%  compounded weekly (52 weeks in a year). Red Star account: interest is earned at an annual interest rate of 5.95%  compounded continuously. Which investment account - Blue Star or Red Star - will result in the greatest total at the end of five years? What is the total after five years for this account? How much more is it than the total for the other account?