Ben deposits $2,500 into an account paying 5 percent interest, compounded annually. At the same time,...

Ben deposits $2,500 into an account paying 5 percent interest, compounded annually. At the same time, Mike deposits $2,500 into an account paying 2.5 percent interest, compounded annually. At the end of five years:

A. Ben will have earned somewhere between 1 and 2 times the amount of interest that Mike earned.

B. Both Ben and Mike will have earned the same amount of interest.

C. Ben will have earned exactly twice the amount of interest as Mike earned.

D. Ben will have earned more than twice the amount of interest that Mike earned.

Expert Solution

jeff jeffy answered 2 years ago

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