Question 1199033
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Paul made two investments:
A: $4,000.00 at 4.5% compounded semi-annually, for 3 years;
B: $3,500.00 at 5.2% simple interest, for 3 years.
Which investment earns the highest interest? By how much?
What is the total interest earned?
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<pre>
For the first compounded interest account, use the standard formula for the interest amount

    FV = {{{4000*(1+0.045/2)^(3*2)}}} - 4000


For the second simple interest account, use the standard formula for the interest amount

    FV = 3500*0.052*3.


Calculate each interest separately using your calculator.


Then answer your questions.
</pre>

You are explained and instructed.


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On simple interest accounts, &nbsp;see the lesson

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/percentage/lessons/Simple-interest-percentage-problems.lesson>Simple interest percentage problems</A> 

in this site.


On compounded interest accounts, &nbsp;see the lesson

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/percentage/lessons/Compound-interest-percentage-problem.lesson>Compounded interest percentage problems</A> 

in this site.



Learn the subject from there.