QuestionJessica and Tom each deposit \$10,000 at 2% interest. Calculate their interest for 3 years and compare who earns more each year.
Studdy Solution
Now, compare the interest earned by Jessica and Tom each year.In the first year, both earn \$200.In the second year, Jessica earns \$200 and Tom earns \$404.In the third year, Jessica earns \$200 and Tom earns \$612.08.So, Tom earns more interest than Jessica in the second and third years.
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