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1 August, 11:03

Lana and Ron each opened a separate bank account with $1000. They were both offered a 4.5% interest rate for 2 years. After 2 years, Lana's account had more money than Ron's. What could explain the difference?

A. Lana's account earned simple interest; Ron's account earned compound interest.

B. Lana invested funds for a longer time period.

C. Lana's account had a higher interest rate.

D. Lana's account earned compound interest; Ron's account earned simple interest.

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Answers (1)
  1. 1 August, 12:08
    0
    I think the answer is D, simple intrest stays the same
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