Question

Annie and Ellie are each saving for college. Their grandmother gave

each of them $2500 to begin saving. Annie opened a savings account that
earns 2.4% simple interest while Ellie opened an account that earns 1.9%
interest compounded annually. In 7 years, who will have more money in
their account? How much more?*

Answer 1

332.50

Explanation:

Answer 2

Annie will have $87.75 more than Ellie

Explanation:

Annie :

2500(.024)7

Multiply all 3 together to get the answer

2500 x .024 x 7= 420

Ellie :

2500(.019)7

Multiply all three together to get the answer

2500 x .019 x 7 = 332.50

Hope you find my answer helpful!