Herky and Elaina want to compare their investment accounts to see how much they will have in the accounts after eight years
They substitute their values shown below into the compound interest formula.
|
Name
Herky
Elaina
Principal
$500
$400
Compound Interest Accounts
Interest Rate Number of Years
5%
8
6%
A = P(1 + r)
Compounded
Once a year
Once a year
Which pair of equations would correctly calculate their compound interests?
Herky: A - 500(1+0.08) 5. Elaina: A-400(1+0.08)
Herky: A-(500x 1) +(0.05) Elaina: A - (400x 1) +(0.06)
Herky: A - 500(1+0.05) 8 Elaina: A - 400(1+0.06) 8
Herky A - (500x 1) +(0.05) Elaina: A-(400 x 1)+(0.05)