QuestionAmy deposits \$60,000 at 3\% annual compound interest, Bill at 3\% simple interest. Calculate their interest for 3 years.

Studdy Solution
Bill's interest for the third year is still calculated on the initial deposit.
$$= \$60,000 \cdot0.03 \cdot = \$,800$$So, Amy earns more interest than Bill in each of the first three years.