Katie invests $5,000 in an account earning 4% interest, compounded annually for 5 years. two years after katie's initial investment, emily invests $10,000 in an account earning 4% interest, compounded annually for 3 years. given that no additional deposits are made, compare the amount of interest earned after the interest period ends for each account. (round to the nearest dollar)

Emily will earn $166 more interest than Katie after the interest period ends for each account.

Step-by-step explanation:

Formula for compound interest is:   , where P is the initial amount, A is the final amount with interest,  r  is the rate of interest in decimal,  n is the number of compounding in a year and  t  is the time duration

Katie invests $5,000 in an account earning 4% interest, compounded annually for 5 years. That means here,   and

So,  

Thus, the amount of interest earned by Katie

Now, Emily invests $10,000 in an account earning 4% interest, compounded annually for 3 years. That means here,   and

So,  

Thus, the amount of interest earned by Emily

After the interest period ends for each account, Emily will earn ($1249 - $1083) or $166 more interest than Katie.

answer:

c 60% on edg