Amanda deposits $10,000 into an account that pays simple interest at a 2% rate of per year. Sam deposits $10,000 into an account that also pays 2% interest per year. But it is compounded annually. Find the interest Amanda and Sam earn during each of the first three years. Then decide who earns more interest for each year. Assume there are no withdrawals and no additional deposits. Year First Second Third Interest Amanda earns (Simple interest) Interest Sam earns (Interest compounded annually) Who earns more interest? Amanda earns more. Sam earns more. They earn the same amount. Amanda earns more. Sam earns more. They earn the same amount. Amanda earns more. Sam earns more. They earn the same amount.
