Answered

Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Get expert answers to your questions quickly and accurately from our dedicated community of professionals. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Cameron deposits $120,000 in a bank account that earns 0.5% interest, compounded yearly,
At the same time, John deposits $135,000 in another bank account that earns 0.4% interest,
compounded yearly
After one year, who earns a greater amount of interest?
How much more?
earns more interest.
He earned
more dollars after one year.

Sagot :

iiJakeRL

Answer:

Cameron earns $14,940 more after one year.

Step-by-step explanation:

Compound Interest Equation: A = P(1 + r)^t

P = Initial Money Invested

r = Interest rate in decimal form

t = time in years

Cameron: A = 120,000(1 + 0.005)^1

A = $120,600 after one year

John: A = 135,000(1+0.004)^1

A = 135,540 after one year

We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.