Which one of the given statements is true

Reference no: EM131948616

Question: A boy deposited $3,000 this morning into an account that pays 5% interest, compounded annually. A man also deposited $3,000 this morning into an account that pays 5% interest, compounded annually. At the end of the year, the boy will withdraw his interest earnings and spend it as soon as possible. The man will reinvest his interest earnings into his account. Given this, which one of the following statements is true? (This isn't explicitly from the video lecture but it is related to the concept of compound interest. If you are having trouble understanding how it will work out differently for the man and the boy, then figure out the interest that each one receives over the next few years keeping in mind that the boy never leaves the interest amount in the account for the following year.)

Reference no: EM131948616

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