Patricia invests $520 in an account that pays 4 percent simple interest. Beatric
ID: 2685352 • Letter: P
Question
Patricia invests $520 in an account that pays 4 percent simple interest. Beatrice invests the same amount in an account that pays 4 percent interest compounded annually. Which of the following statements is true? Answer choices Beatrice will earn 4% more than Patricia on her funds. Beatrice will have twice as much money as Patricia in her account in 2 years. Beatrice will not be able to withdraw her funds until interest is compounded. Beatrice will have the same amount of money in her account in 1 year as Patricia. Beatrice will not be able to withdraw her money until interest is compounded.Explanation / Answer
Patricia invests $520 in an account that pays 4 percent simple interest. Beatrice invests the same amount in an account that pays 4 percent interest compounded annually. Which of the following statements is true? Answer choices
Beatrice will earn 4% more than Patricia on her funds.
Beatrice will have twice as much money as Patricia in her account in 2 years
. Beatrice will not be able to withdraw her funds until interest is compounded.
Beatrice will have the same amount of money in her account in 1 year as Patricia.
Beatrice will not be able to withdraw her money until interest is compounded.