Three friends decide that they each want to be able to buy a new boat in five years. Vanore puts $1,000 in a savings account with a simple interest rate of 4.5%.
Keir invests $1,200 in a standard savers account with a simple interest rate of 4%.
Omar invests $950 in a junior achievers account with a 6% annual compound interest rate.
Who will have the most money to spend on a new boat at the end of the five years? Use the formula / - Pre for
simple interest and A = P(1+r) for compound interest. Round to the nearest dollar.
O Keir will have $1,440, the most money for the boat.
O Vanore will have the most money, $1,271, for the boat.
O Omar will have the most money, $1,271, for the boat.
O Vanore will have $1,440, the most money for the boat
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