Alex and Courtney are each investing $1,200 today in a savings account. Alex will earn 4% interest compounded annually. Courtney will earn 4% simple interest. After ﬁve years Alex will have ____
More than Courtney.
A) $19.98
B) $20.13
C) $20.17
D) $20.21
E) $20.28

Question

Quizplus · Accepted Answer

Alex's investment with compound interest will grow slightly more than Courtney's with simple interest. The difference after five years is $19.98.

Alex and Courtney Are Each Investing $1,200 Today in a Savings