Question

~SIMPLE AND COMPOUND INTEREST~

-Please help-
Carly deposited $800 in an account that earns 6% annual compounded semi-annually. Lara deposited $800 in an account that earns 6% simple interest. How much will each girl have in their account at the end of 10 years if they make no withdrawals or deposites
(C is for carly, and the L is for Lara)
A. C: $1432.68 L:$1280
B. C: $1444.89 L:$1280
C. C: $1444.89 L:$1320
D. C: $1432.68 L:$1320

Answer 1

Let's start by the easiest case, Lara's :

`800+800*(6/100)*10=1280`

Now for Carly : 6% on a year -> 3% semi anually
Hence after 10 years = 20 half years she'll have
`800*(1+3/100)^20\approx1444.89`

Answer B