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Cameron deposits $120,000 in a bank account that earns 0.5% interest, compounded yearly,
At the same time, John deposits $135,000 in another bank account that earns 0.4% interest,
compounded yearly
After one year, who earns a greater amount of interest?
How much more?
earns more interest.
He earned
more dollars after one year.

Respuesta :

iiJakeRL

Answer:

Cameron earns $14,940 more after one year.

Step-by-step explanation:

Compound Interest Equation: A = P(1 + r)^t

P = Initial Money Invested

r = Interest rate in decimal form

t = time in years

Cameron: A = 120,000(1 + 0.005)^1

A = $120,600 after one year

John: A = 135,000(1+0.004)^1

A = 135,540 after one year