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

This topic has expert replies
Legendary Member
Posts: 2656
Joined: 07 Sep 2017
Thanked: 6 times
Followed by:4 members

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

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.

Answer: C

Source: Official Guide