Would you rather have 600 in on account with 5% interest or 500 in one account with 6% interest? An why mah dude.

Question

Mathematics

Denise

31 July, 13:55

Would you rather have 600 in on account with 5% interest or 500 in one account with 6% interest? An why mah dude.

+3

Answers (2)

Know the Answer?

Jocelyn Cameron · Answer 1

Jocelyn Cameron 31 July, 14:41

0

I think the answer is 5%

Armani Larson · Answer 2

5% of 600 = 5/100 x 600 = $30

6% 0f 500 = 6/100 x 500 = $30

They both earn the same interest, so there is no difference if you place it for a year.

if compounded for 10 years

600 (1 + 0.05) ^10 = $977

500 (1+0,06) ^10 = $895

So it is better to put $600 compounded at 5%