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Anne deposited $500 in an account that earns 6% simple annual interest. Shelly deposited $500 in an account that earns 6% annual interest compounded annually. They leave the money in the account for 4 years. What is the difference between the two accounts?

Anne deposited $500 in an account that earns 6% simple annual interest. Shelly deposited-example-1

1 Answer

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Answer:

$11.23

Explanation:

A) 500 + 4(.06*500)


500+4\left(0.06\cdot \:500\right)=620

B)
500\cdot \:1.06^4=631.23848

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