Jenny deposits $50,000 into an account that pays simple interest at a rate of 2% per year. Frank deposits $50,000 into an account that also pays 2% interest per year. But it is compounded annually.
Find the interest Jenny and Frank earn during each of the first three years.
Then decide who earns more interest for each year.
Assume there are no withdrawals and no additional deposits.

Jenny will earn $ 1,000 in interest each year, while Frank will earn $ 1,000 the first year, $ 1,020 the second, and $ 1,040.40 the third.

Step-by-step explanation:

Since Jenny deposited $ 50,000 into an account that pays simple interest at a rate of 2% per year and Frank deposited $ 50,000 into an account that also pays 2% interest per year but it was compounded annually, to find the interest Jenny and Frank earn during each of the first three years and decide who earns more interest for each year assuming there are no withdrawals and no additional deposits, the following calculation must be performed:

Jenny:

Year 1 = 50,000 x 1.02 = 51,000

Year 2 = 50,000 x 1.02 = 51,000 + 1,000 = 52,000

Year 3 = 50,000 x 1.02 = 51,000 + 2,000 = 53,000

Frank:

Year 1 = 50,000 x 1.02 = 51,000

Year 2 = 51,000 x 1.02 = 52,020

Year 3 = 52,000 x 1.02 = 53,060.40

the answer for this question is 38

step-by-step explanation: s