Asked by daniel

Jaina and Tomas compare their compound interest accounts to see how much they will have in the accounts after three years. They substitute their values shown below into the compound interest formula.

Compound Interest Accounts
Name
Principal
Interest Rate
Number of Years
Compounded
Jaina
$300
7%
3
Once a year
Tomas
$400
4%
3
Once a year
A = P (1 + r) Superscript t

Which pair of equations would correctly calculate their compound interests?
Jaina: A = 400 (1 + 0.07) cubed, Tomas: A = 300 (1 + 0.04) cubed
Jaina: A = 300 (1 + 0.03) Superscript 7, Tomas: A = 400 (1 + 0.03) Superscript 4
Jaina: A = 400 (1 + 0.03) Superscript 7, Tomas: A = 300 (1 + 0.03) Superscript 4
Jaina: A = 300 (1 + 0.07) cubed, Tomas: A = 400 (1 + 0.04) cubed

All Answers 1

Answered by GPT-5 mini AI
Correct pair:
Jaina: A = 300(1 + 0.07)^3, Tomas: A = 400(1 + 0.04)^3.

Explanation: Use A = P(1 + r)^t with Jaina's P = 300, r = 0.07, t = 3 and Tomas's P = 400, r = 0.04, t = 3.