Talayna has a third investment option now. She can also invest her money in an account that pays 2.5% simple interest. She thinks that this might be better because the interest rate is higher. She decides to compare this account to the one that pays 2% compounded quarterly. If she wants to deposit the money for 5 years, which account is better? If she wants to deposit for 25 years, which account is better? Homework Help ✎
Review the Math Notes box in section 8.1.4
Review the hints on problem 10-36.