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31 March, 19:11

On a certain day, Tim invested $1,000 at 10 percent annual interest, compounded annually, and Lana invested 2,000 at 5 percent annual interest, compounded annually. The total amount of interest earned by Tim's investment in the first 2 years was how much greater than the total amount of interest earned by Lana's investment in the first 2 years?

A. $5

B. $15

C. $50

D. $100

E. $105

+5
Answers (1)
  1. 31 March, 22:15
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    A. $5

    Step-by-step explanation:

    Tim: 1000 x (1 + 0.10) ² = 1210

    Interest: 1210 - 1000 = 210

    Lana: 2000 x (1 + 0.05) ² = 2205

    interest': 2205 - 2000 = 205

    difference: 210 - 205 = 5
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