QuestionCalculate and compare interest for Laura's compound and Eric's simple interest on \$70,000 at 3\% for 3 years.

Studdy Solution
Now, let's compare the interest earned by Laura and Eric for each of the first three years.
For year1, both Laura and Eric earn \$2,100.
For year2, Laura earns \$4,263 and Eric earns \$2,100. Laura earns more.
For year3, Laura earns \$6,490.89 and Eric earns \$2,100. Laura earns more.
So, Laura earns more interest than Eric for each year after the first year.