Total Savings After 20 Years $12,000 - 20 years of simple interest
$24,000
Principal
Interest Year
Interest Year 10 Interest Year 20
1
$12,000 x 5% $12,000 x 5% $12,000 x 596
$12,000 in Simple Interest Account 5600 F 56000
512000
F$12,600
$18.000 E $24,000
$12,000+
$12,000 x 5%
1512,000+
$12,000 in Compound Interest $600
86,615.94) $18,323.40)
Account
= $12,600
818,615.94 x 5% 30,323.40 x 5%
519546.74 531,839.57
$12,000 - $20 years of compound
interest
531,839.57
Korina receives $12,000 as a high school graduation gift. She would like to save the money for a down payment on a new house
after she graduates from college. Which option would earn her the most money toward that goal? (4 points)
Оа
Buy the house now to prevent loss.
Oь
Save the money in a piggy bank
Ос
Use a savings account offering simple interest
Od
Use a savings account offering compound interest