olivia will deposit $1,530 in an account that earns 6% simple interest every year. her sister melinda will…

olivia will deposit $1,530 in an account that earns 6% simple interest every year. her sister melinda will deposit $1,500 in an account that earns 8% interest compounded annually. the deposits will be made on the same day, and no additional money will be deposited or withdrawn from the accounts. which statement about the balances of olivias account and melindas account at the end of 3 years is true?\n\na olivias account will have about $5.40 more than melindas account.\nb olivias account will have about $84.17 more than melindas account.\nc melindas account will have about $5.40 more than olivias account.\nd melindas account will have about $84.17 more than olivias account.

olivia will deposit $1,530 in an account that earns 6% simple interest every year. her sister melinda will deposit $1,500 in an account that earns 8% interest compounded annually. the deposits will be made on the same day, and no additional money will be deposited or withdrawn from the accounts. which statement about the balances of olivias account and melindas account at the end of 3 years is true?\n\na olivias account will have about $5.40 more than melindas account.\nb olivias account will have about $84.17 more than melindas account.\nc melindas account will have about $5.40 more than olivias account.\nd melindas account will have about $84.17 more than olivias account.

Answer

Answer:

C. Melinda's account will have about $5.40 more than Olivia's account.

Explanation:

Step1: Calculate Olivia's balance using simple interest

$$A = P(1 + rt) = 1530(1 + 0.06 \times 3) = 1530(1.18) = 1805.40$$

Step2: Calculate Melinda's balance using compound interest

$$A = P(1 + r)^t = 1500(1 + 0.08)^3 = 1500(1.08)^3 \approx 1889.57$$

Step3: Determine the difference between the two balances

$$1889.57 - 1805.40 = 84.17$$

Step4: Identify the account with the higher balance

Melinda's balance ($1,889.57) is greater than Olivia's ($1,805.40) by $84.17.