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Q: The same amount of principal is invested in different accounts earning the same interest rate. Which of the following accounts would have the greatest accumulated value at the end of one year? a.
An account earning no interest b. An account earning simple interest c. An account earning interest compounded annually d. An account earning interest compounded daily
A: You deposit $450 in an account that earns 6% compounded annually (once per year). The balance in your account after 4 years is $568.11. $450(1+i)^n = 450(1.06)^4 = 450*1.26247696 = $568.11
SamiMarie|Points 0|
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Asked 9/30/2013 1:18:07 PM
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