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Scott and Todd are twins. Scott invests $50 a month for ten years starting on his...

Scott and Todd are twins. Scott invests $50 a month for ten years starting on his 20th birthday. Todd invests $50 a month for ten years starting on his 25th birthday. Both Scott and Todd earn 7 percent. Which one of the following statements is correct based on this information? Assume they never withdraw any money from their accounts.

A.Both Scott and Todd will have the same amount saved when they turn 60 if the 7 percent is simple interest.

B.Scott and Todd will earn the same amount of interest during the year of their 40th birthday if the 7 percent is simple interest.

C.Todd will have more money saved than Scott when they are 70 years old if the 7 percent is compounded annually.

D.Scott and Todd will earn the same amount of interest during the year of their 50th birthday if the 7 percent is compounded annually.

Why the answer is B. I want an explanation for this one please. Thank you!

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Answer #1

B.Scott and Todd will earn the same amount of interest during the year of their 40th birthday if the 7 percent is simple interest.

Explanation:- The simple interest is computed on the principal ( and interest is not computed on interest) and the principal amount is same i.e 50 per month.

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Answer #2
B.Scott and Todd can earn an equivalent quantity of interest throughout the year of their fortieth birthday if the seven p.c is easy interest. Explanation:- the straightforward interest is computed on the principal ( and interest isn't computed on interest) and also the principal quantity is same i.e fifty per month
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