Sherman Harmon
06/10/2024 · High School
Susan deposits \( \$ 10,000 \) into an account that pays simple interest at a rate of \( 6 \% \) per year. Joe deposits \( \$ 10,000 \) into an account that also pays \( 6 \% \) interest per year. But it is compounded annually. Find the interest Susan and Joe 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.
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Susan earns \( \$600 \) in Year 1, \( \$1,200 \) in Year 2, and \( \$1,800 \) in Year 3. Joe earns \( \$600 \) in Year 1, \( \$1,236 \) in Year 2, and \( \$1,910.16 \) in Year 3. Joe earns more interest than Susan in Years 2 and 3, while they earn the same in Year 1.
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