You are given three options.You may have the balance in an account that has been collecting 5 percent interest for 20 years,the balance in an account that has been collecting 10 percent interest for 10 years,or the balance in an account that has been collecting 20 percent interest for five years.Each account had the same original balance.Which account now has the lowest balance?
A)the first one
B)the second one
C)the third one
D)They all have the same balance.

Question

Quizplus · Accepted Answer

The balance in the account that has been collecting 20 percent interest for five years will have the lowest balance. This is because it has the highest interest rate and the shortest time frame. In contrast, the account that has been collecting 5 percent interest for 20 years has the lowest interest rate and the longest time frame, so it will have the highest balance. The account that has been collecting 10 percent interest for 10 years is in between and does not have the lowest balance.

You Are Given Three Options