QuestionAnn deposits \$40,000 at 4% annual compound interest. Jim deposits \$40,000 at 4% simple interest. Find their interest for 3 years.

Studdy Solution
In the first year, both Ann and Jim earned the same amount of interest, \$,600.
For the second and third years, we need to repeat the steps for Ann and Jim, but with $t =2$ for the second year and $t =3$ for the third year.