Question

Sandra and Miriam are the same age. Sandra's parents deposited $10,000 into a
college savings account in the year she was born. Miriam's parents deposited
$10,000 into a college savings account when she was 14. There were no additional
deposits or withdrawals from either account, and both accounts have earned an 8
percent rate of interest, compounded annually, each year. (Select 2 reasons why)
Sandra will have more money in her college savings account at age 18?
Select 2 correct answer(s)
Sandra's parents deposited more into her account than Miriam's parents
Miriam's account will be penalized for early withdrawal.
Miriam's account has not been compounding interest as long as Sandra's.
Sandra's account has been earning interest for 14 more years than Miriam's

Answer 1

The reason why Sandra would have more money in her account would be due to:

• Sandra's account has been earning interest for 14 more years than Miriam's.
• Miriam's account has not been compounding interest as long as Sandra's.

The reasons why Sandra would have more money in her account

One of the great reasons why Miriam would have greater interest is due to the fact that her account has been receiving more interest compared to Miriam's.

Another factor is because of the compound interest. The original 10000 in Sandra's savings has earned interests overtime and the interests have also earned further interests.

Read more on interest rates here:

https://brainly.com/question/2294792

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