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Steven invests $20,000 in an account earning 3% interest, compounded annually for 10 years. Three years after Stevens's initial investment, Evan invests $10,000 in an account earning 7% interest, compounded annually for 7 years. Given that no additional deposits are made, compare the amount of interest earned after the interest period ends for each account. (round to the nearest dollar)

Respuesta :

The answer is B)Steven earned $820 more in interest in his account than Evan.
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Answer:

B) Steven earned $820 more in interest in his account than Evan

Step-by-step explanation:

Steven : [tex]20,000(1+.03)^{10} = 26, 878[/tex]

Total interest earned: [tex]26,878-20,000=6,878[/tex]

Evan: [tex]10,000(1+.07)^{7} = 16,058[/tex]

Total interest earned: [tex]16,058-10,000=6,058[/tex]

Subtract the two interests together:

[tex]6,878-6,058=820[/tex]

Stevens earns $820 more in interest than Evan

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