### Home > ACC7 > Chapter 10 Unit 11 > Lesson CC3: 10.1.2 > Problem 10-31

10-31.

Tim wants to invest some money that his grandmother gave him. He has

The simple interest account has an interest rate of

. With this interest rate, what is the total amount in the bank after 5 years? Add the interest he earns to his initial principal to find the total amount he would have after 5 years.

The compound interest account is also for 5 years (compounded yearly), but it has an interest rate of

. Find the total amount that he would have in this account. Which account is a better investment?

Which account has more money after 5 years?