Stacey deposits $5,000 into an account that pays 2 percent interest, compounded annually.At the same time, Kurt deposits $5,000 into an account paying 3.5 percent interest, compounded annually.At the end of three years:
A)Both Stacey and Kurt will have accounts of equal value.
B)Kurt will have twice the money saved that Stacey does.
C)Kurt will earn exactly twice the amount of interest that Stacey earns.
D)Kurt will have a larger account value than Stacey will.
E)Stacey will have more money saved than Kurt.

Question

Quizplus · Accepted Answer

Kurt's account grows at a higher interest rate (3.5%) compared to Stacey's (2%), so after three years, Kurt will have a larger account value than Stacey.

Stacey Deposits $5,000 into an Account That Pays 2 Percent