Jessica deposits $50,000 into an account that pays 3% interest per year, compounded annually.Tom deposits...
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Algebra
Jessica deposits $50,000 into an account that pays 3% interest per year, compounded annually.Tom deposits $50,000 into an account that also pays 3% per year. But it is simple interest.Find the interest Jessica and Tom earn during each of the first three years.Then decide who earns more interest for each year.Assume there are no withdrawals and no additional deposits.YearFirstSecondThirdInterest Jessica earns(Interest compounded annually)$0$0$0Interest Tom earns(Simple interest)$0$0Who earns more interest?O Jessica earns more.O Tom earns more.O They earn the same amount.O Jessica earns more.O Tom earns more.O They earn the same amount.O Jessica earns more.O Tom earns more.O They earn the same amount.
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