QuestionLaura deposits \$70,000 at 3% annual compound interest, while Eric uses simple interest. Calculate their interest for 3 years and compare.

Studdy Solution
Now, we can compare the interest earned by Laura and Eric for each year.
In the first year, both Laura and Eric earned \$2,100.
In the second year, Laura earned \$4,303 while Eric earned \$2,100. So, Laura earned more interest in the second year.
In the third year, Laura earned \$6,612.09 while Eric earned \$2,100. So, Laura earned more interest in the third year.