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~SIMPLE AND COMPOUND INTEREST~

-Please help-

Carly deposited $800 in an account that earns 6% annual compounded semi-annually. Lara deposited $800 in an account that earns 6% simple interest. How much will each girl have in their account at the end of 10 years if they make no withdrawals or deposites

(C is for carly, and the L is for Lara)

AC: $1432.68 L:$1280
BC: $1444.89 L:$1280
CC: $1444.89 L:$1320
DC: $1432.68 L:$1320

Verified Answer :

Hippalectryon

Let's start by the easiest case, Lara's :
\(800+800*(6/100)*10=1280\)

Now for Carly : 6% on a year -> 3% semi anually
Hence after 10 years = 20 half years she'll have \(800*(1+3/100)^20\approx1444.89\)

Answer B

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