Turnbull Chambers
05/10/2023 · Primary School
Ann deposits \( \$ 40,000 \) into an account that pays simple interest at a rate of \( 2 \% \) per year. Jim deposits \( \$ 40,000 \) into an account that also pays \( 2 \% \) interest per year. But it is compounded annually. Find the interest Ann and Jim 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.
UpStudy ThothAI Solution
Tutor-Verified Answer
Quick Answer
Ann earns \( 800 \) in Year 1, \( 1,600 \) in Year 2, and \( 2,400 \) in Year 3. Jim earns \( 800 \) in Year 1, \( 1,616 \) in Year 2, and \( 2,448.32 \) in Year 3. Jim earns more interest in Year 2 and Year 3 than Ann.
Step-by-step Solution
Answered by UpStudy AI and reviewed by a Professional Tutor
UpStudy ThothAI
Self-Developed and Ever-Improving
Thoth AI product is constantly being upgraded and optimized.
Covers All Major Subjects
Capable of handling homework in math, chemistry, biology, physics, and more.
Instant and Accurate
Provides immediate and precise solutions and guidance.
Try Now
Ask Tutors
Ask AI
10x
Fastest way to Get Answers & Solutions
By text
Enter your question here…
By image
Re-Upload
Submit