Donnelly Logan
12/09/2023 · Primary 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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