SOLUTION: Dave won a photography contest and received a $1300 cash prize. will he earn more interest in 1 year if he invests his winnings in a simple interest account that pays 6% or in an a
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Question 1085810: Dave won a photography contest and received a $1300 cash prize. will he earn more interest in 1 year if he invests his winnings in a simple interest account that pays 6% or in an account that pays 5.75% interest compounded monthly? how much more interest will he earn? Answer by rfer(16322) (Show Source):
You can put this solution on YOUR website! I=pRT
I=1300*0.06*1
I=78
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FV=1300(1+0.0575/12)^12
FV=1300(1.00479)^12
FV=1300*1.059
FV=1376.72
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6% simple is better
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