Respuesta :
Tim will have the most money to spend, around 3800 because the interest rate is compounded anually
Answer:
Tim will have the most money to spend.
Step-by-step explanation:
Staci puts $3,000 in a saving account with a simple interest rate of 5.5%.
His maturity amount will be calculated by the formula of simple interest =
A = P(1+rt)
A = 3,000(1+(0.055×5))
A = 3,000(1+0.275)
A = 3000 × 1.275 = $3,825
Staci will get $3,825 after 5 years
Carmen invests $3,200 in an account with a simple interest rate of 4%.
A = 3,200(1+(0.04×5))
A = 3,200 ( 1+0.2)
A = 3,200 × 1.2 = $3,840
Carmen will get $3,840 after 5 years.
Tim invests 2,500 in an account with a 9% interest rate that is compounded annually.
Now we will calculate the maturity amount of Tim by using this formula
A = [tex]P(1+\frac{r}{n})^{nt}[/tex]
A = [tex]2,500(1+\frac{0.09}{1})^{(1)(5)}[/tex]
A = [tex]2500(1+0.09)^{5}[/tex]
A = [tex]2500(1.09)^{5}[/tex]
A = 2,500 × 1.54 = $3,846.56
Tim will get $3,846.56 after 5 years
Tim will have the most money to spend.
