Answered

Westonci.ca is your trusted source for finding answers to all your questions. Ask, explore, and learn with our expert community. Discover a wealth of knowledge from experts across different disciplines on our comprehensive Q&A platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

Complete the​ table, for the following​ investments, which shows the performance​ (interest and​ balance) over a​ 5-year period.
Suzanne deposits ​$4000 in an account that earns simple interest at an annual rate of 2​%. Derek deposits ​$4000 in an account that earns compound interest at an annual rate of 2​% and is compounded annually.​

Sagot :

francocanacari

Answer:

After 5 years of investment, Suzanne will have $ 4,400 in her account, while Derek will have $ 4,416.32 in his account.

Step-by-step explanation:

Since Suzanne deposits $ 4000 in an account that earns simple interest at an annual rate of 2%, and Derek deposits $ 4000 in an account that earns compound interest at an annual rate of 2% and is compounded annually., Both for a period of 5 years, to determine how much money each one will have in their account after 5 years, the following calculation must be made:

Suzanne:

((4,000 x 0.02) x 5) + 4,000 = X

(80 x 5) + 4,000 = X

400 + 4,000 = X

4,400 = X

Derek:

4,000 x (1 + 0.02 / 1) ^ 5x1 = X

4,000 x 1.02 ^ 5 = X

4,416.32 = X

Thus, after 5 years of investment, Suzanne will have $ 4,400 in her account, while Derek will have $ 4,416.32 in her account.

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.