Question

A bank offers two interest account plans. Plan A gives you 6% interest compound annually. Plan B gives you 13% annual simple interest. You plan to invest $2,000 for the next 4 years. Which account earns you the most interest (in dollars) after 4 years? How much will you have earned?

Plan A $524.95
Plan B $524.95
Plan B $1,040.00••
Plan A $1,040.00

Correct me

Answer 1

you are correct.

Answer 2

thanks

Answer 3

plan A1,040.00

Answer 4

Sorry for the confusion, you are correct. Plan A would earn you $524.95 in interest after 4 years and Plan B would earn you $1,040.00. Therefore, Plan B earns you the most interest (in dollars) after 4 years.