31
practice examMultiple Choice

Practice Exam

Question 31 • Advanced Financial Algebra

Neymar has $⁢3,000 to invest and is choosing between two accounts. One account offers simple interest at a 3.5% annual rate, while the other offers compound interest at a 3% annual rate, compounded annually. He plans to invest for 6 years. Which account will give Neymar a higher balance after 6 years? Compound Interest Formula: A=P⁢(1+(r)/(n))^n⁢t Simple Interest Formula: A=P⁢(1+r⁢t)

Answer
A
Both accounts will provide the same balance
B
The Compound Interest Account
C
The Simple Interest Account
D
More information is needed to decide
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