monica wants to open a savings account with a deposit of $3,000. monica will not make any additional…

monica wants to open a savings account with a deposit of $3,000. monica will not make any additional deposits or withdrawals after she opens the account. her bank offers two different savings accounts. account x pays 2.1% simple annual interest. account y pays 2.4% interest compounded annually. which statement about these accounts at the end of 5 years is true? f account x would earn monica about $62.70 more interest than account y. g account y would earn monica about $62.70 more interest than account x. h account x would earn monica about $45.00 more interest than account y. j account y would earn monica about $45.00 more interest than account x.

monica wants to open a savings account with a deposit of $3,000. monica will not make any additional deposits or withdrawals after she opens the account. her bank offers two different savings accounts. account x pays 2.1% simple annual interest. account y pays 2.4% interest compounded annually. which statement about these accounts at the end of 5 years is true? f account x would earn monica about $62.70 more interest than account y. g account y would earn monica about $62.70 more interest than account x. h account x would earn monica about $45.00 more interest than account y. j account y would earn monica about $45.00 more interest than account x.

Answer

Explanation:

Step1: Calculate simple - interest for Account X

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P=$3000$, $r = 0.021$, and $t = 5$. So, $I_X=3000\times0.021\times5=3000\times0.105 = 315$.

Step2: Calculate compound - interest for Account Y

The compound - interest formula is $A=P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years. Here, $P = 3000$, $r=0.024$, and $t = 5$. So, $A_Y=3000\times(1 + 0.024)^5=3000\times1.024^5$. $1.024^5=1.024\times1.024\times1.024\times1.024\times1.024\approx1.1264926$. Then $A_Y\approx3000\times1.1264926 = 3379.4778$. The compound interest $I_Y=A_Y - P=3379.4778-3000=379.4778$.

Step3: Find the difference in interest

$I_Y - I_X=379.4778 - 315=64.4778\approx62.70$.

Answer:

G. Account Y would earn Monica about $62.70 more interest than Account X.