julie has $4,000 to invest. which account will earn the most interest if she makes no additional deposits or…

Explanation:

Step1: Calculate simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. For the first option: $P = 4000$, $r=0.06$, $t = 5$. So $I_1=4000\times0.06\times5=4000\times0.3 = 1200$.

Step2: Calculate second simple - interest

For the second option: $P = 4000$, $r = 0.08$, $t=3$. So $I_2=4000\times0.08\times3=4000\times0.24 = 960$.

Step3: Calculate compound - interest formula

The compound - interest formula is $A=P(1 + r)^t$, and the interest $I=A - P$. For the third option: $P = 4000$, $r = 0.16$, $t = 1$. So $A_3=4000\times(1 + 0.16)^1=4000\times1.16=4640$, and $I_3=4640 - 4000=640$.

Step4: Calculate fourth simple - interest

For the fourth option: $P = 4000$, $r = 0.05$, $t = 4$. So $I_4=4000\times0.05\times4=4000\times0.2 = 800$.

Answer:

An account that pays 6% simple interest annually for 5 years