8
QuizMultiple Choice

Investing — Unit test

Question 8 • AZ-College Prep Math B

Melanie invests $4,000 into an account offering 4% interest compounded annually. Gina invests $4,000 into a simple interest savings account offering a 4.5% interest rate. What is the dollar amount of the greater balance at the end of five years? Round to the nearest dollar. Use the formula for compound interest; Use the formula for simple interest.

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Answer

Correct Answer:

"4,900"

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