Mathematics, 21.09.2019 05:30 newtonthenewt
Aerial's grandmother gave her $5,500.00 to save for her college education. she went to the bank to open a savings account. the bank told her they had two options available.
account a will pay 5.5% simple interest until the account is closed.
account b will pay 4.5% simple interest and if the account is left open for longer than 3 years, then at the end of the third year a bonus account will be opened with $250 that also earns 4.5% for the remainder of the time the initial account is open. when the initial account is closed, the bonus account will be closed as well and the money from the two accounts will be combined.
if aerial is planning on leaving the money in the account for 4 years and then withdrawing all funds, then account a or b is the better choice earning her more.
a.) 18.75
b.) 30.00
c.) 41.25
d.) 208.75
e.) 220.00
Answers: 2
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