4. You want to deposit $600 in a savings account. Account A earns 3.5% simple interest per year. Account B earns 3.3% interest compounded annually. a. Which account should you choose if you invest your money for 3 years? 6 years? Explain. b. After how many years is the balance in Account B greater than the balance in Account A? c. After how many years is the difference between the account balances greater than $5?
4. You want to deposit $600 in a savings account. Account A earns 3.5% simple interest per year. Account B earns 3.3% interest compounded annually. a. Which account should you choose if you invest your money for 3 years? 6 years? Explain. b. After how many years is the balance in Account B greater than the balance in Account A? c. After how many years is the difference between the account balances greater than $5?
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter4: Managing Your Cash And Savings
Section: Chapter Questions
Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...
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![4. You want to deposit $600 in a savings account. Account A earns 3.5% simple interest per
year. Account B earns 3.3% interest compounded annually.
a. Which account should you choose if you invest your money for 3 years? 6 years? Explain.
b. After how many years is the balance in Account B greater than the balance in Account A?
c. After how many years is the difference between the account balances greater than $5?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F154b0005-2d66-487b-be5a-61c7907b71b6%2Fd5280a4c-568a-4431-9f96-0dcc5205ef7a%2F7k6hjm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4. You want to deposit $600 in a savings account. Account A earns 3.5% simple interest per
year. Account B earns 3.3% interest compounded annually.
a. Which account should you choose if you invest your money for 3 years? 6 years? Explain.
b. After how many years is the balance in Account B greater than the balance in Account A?
c. After how many years is the difference between the account balances greater than $5?
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