Question

Select the correct answer from each drop-down menu. Julie invests $200 per month in an account that earns 6% interest per year, compounded monthly. Leah invests $250 per month in an account that earns 5% interest per year, compounded monthly. After 10 years, Julie's account balance will be After 10 years, Leah's account balance will be After 10 years, will have more money in her account.

the answer: $32,776 / $38,821 / leah​

Answer 1

Julie invests $200 per month in an account that earns 6% interest per year, compounded monthly. Leah invests $250 per month in an account that earns 5% interest per year, compounded monthly.

After 10 years, Julie’s account balance will be

$32,776

. After 10 years, Leah’s account balance will be

$38,821

. After 10 years,

Leah

will have more money in her account.

Answer 2

After 10 years, Julie's account balance will be $ 363.88 and Leah's account balance will be $ 411.75, thus Leah will have more money in her account.

Explanation:

Since Julie invests $ 200 per month in an account that earns 6% interest per year, compounded monthly, and Leah invests $ 250 per month in an account that earns 5% interest per year, compounded monthly, to determine the amount of each after 10 years, the following calculations must be performed:

200 x (1 + 0.06 / 12) ^ 10x12 = X

200 x 1.005 ^ 120 = X

200 x 1.8193 = X

363.88 = X

250 x (1 + 0.05 / 12) ^ 10x12 = X

250 x 1.00416 ^ 120 = X

250 x 1.647 = X

411.75 = X

Therefore, after 10 years, Julie's account balance will be $ 363.88 and Leah's account balance will be $ 411.75, thus Leah will have more money in her account.