Three friends decide that they each want to be able to buy a new boat in five years. Vanore puts $1,000 in a savings account with a simple interest rate of 4.5%. Keir invests $1,200 in a standard savers account with a simple interest rate of 4%.Omar invests $950 in a junior achievers account with a 6% annual compound interest rate.Who will have the most money to spend on a new boat at the end of the five years? Use the formula for simple interest and for compound interest. Round to the nearest dollar.
Answer
A
Keir will have $1,440, the most money for the boat.
B
Vanore will have the most money, $1,271, for the boat.
C
Omar will have the most money, $1,271, for the boat.
D
Vanore will have $1,440, the most money for the boat