document.write( "Question 1135874: Hi,
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\n" ); document.write( "\n" ); document.write( "Decide whether the statement makes sense, and explain your reasoning. John is planning to invest his money for one year only. He chose an account paying simple interest at 6% per year which was clearly a better deal than an account paying a 5.9% APR with interest compounded annually.\r
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Algebra.Com's Answer #753572 by rothauserc(4718)\"\" \"About 
You can put this solution on YOUR website!
Let's say that John invested $1000
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\n" ); document.write( "1) simple interest(SI) calculation, SI = (P * r * t)/100, P is principle, r is rate and t is time in years)
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\n" ); document.write( "(1000 * 6 * 1)/100 = $60
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\n" ); document.write( "After 1 year, John has $1060 in his account
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\n" ); document.write( "2) compound interest calculation, A = P(1 +(r/n*100))^(nt), A is amount after t years, n is number of times the interest is compounded yearly, r is rate
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\n" ); document.write( "Amount after 1 year = 1000(1 +(5.9/(1 * 100))^1 = 1059
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\n" ); document.write( "Simple interest will give John $1 more than compound interest
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\n" ); document.write( "John is correct
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