Question

Ryan wants to invest in a bank account that will double his money in the smallest

period of time. He has two options. Account A will compound his principal at 5% every
six months. Account B offers him a simple interest rive of 5% on his principal every
year.
Which account will double his principal first? Why?

Answer 1

Account A

Explanation:

Account A will double the money in:

72/2.5=28.8

28.8 x 6=172.8 months=`14.4 years

Account B will double the money in:

100/5=20 years