Business, 10.04.2020 02:46 vladisking888
Sam just opened a savings account paying 3.5 percent interest, compounded annually. After four years, the savings account will be worth $5,000. Assume there are no additional deposits or withdrawals. Given this, Sam:
A) will earn the same amount of interest each year for four years.
B) will earn simple interest on his savings every year for four years.
C) could have deposited less money today and still had $5,000 in four years if the account paid a higher rate of interest.
D) has an account currently valued at $5,000.
E) could earn more interest on this account if the interest earnings were withdrawn annually.
Answers: 1
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