Three friends decide that they each want to be able to buy a new bike in four years.
lliana puts $500 in a savings account with a simple interest rate of 4%.
joann invests $515 in a standard savers account with a simple interest rate of 3%.
cyndy invests $500 in a junior achievers account with a 3.5% compound interest rate.
using the formula / - prt for simple interest and a=p(1+r) for compound interest, who will have the most money to spend on a
new bike at the end of the four years?
joann will have the most money, $576.80 for the bike
cyndy will have the most money, $580.00 for the bike.
cyndy will have $576.80, the most money for the bike.
lliana will have $580.00, the most money for the bike.