## A bank account earned $$2\%$$ annual interest, compounded daily, for as long as the balance was under $$\1,000,$$ start

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### A bank account earned $$2\%$$ annual interest, compounded daily, for as long as the balance was under $$\1,000,$$ start

by Vincen » Thu Sep 09, 2021 7:28 am

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A bank account earned $$2\%$$ annual interest, compounded daily, for as long as the balance was under $$\1,000,$$ starting when the account was opened. Once the balance reached $$\1,000,$$ the account earned $$2.5\%$$ annual interest, compounded daily until the account was closed. No deposits or withdrawals were made. Was the total amount of interest earned at the $$2\%$$ rate greater than the total amount earned at the $$2.5\%$$ rate?

(1) The account earned exactly $$\25$$ in interest at the $$2.5\%$$ rate.
(2) The account was open for exactly three years.