Cole G.
asked • 11/12/20Dave won a photography contest and recieved a $1000 cash prize. Will he earn more money if he invests his money in an account that pays 5% simple interest or 4.75% interest compounded monthly?
Raymond B. answered • 12/27/22
Math, microeconomics or criminal justice
5% is 1000x.05 = $50
A=(1+.0475/12)^12= 1.04855=about $48.55 interest in 1 year, compounded monthly
5% simple has $1.45 more interest in 1 year
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