Ayra and Zimi each want to save money. They each make a plan to save 200 Euro a month for the next 10 years. Ayra puts her savings into a box each month. Ximi puts her savings into a bank account paying 2.5% interest. At the end of 10 years how would you expect the totals saved to compare?Group of answer choicesZimi's total will be 2.5% greater than Ayra's total because the interestZimi's total will likely be more than ten times Ayra's total because of the time of the savings.Zimi's total will likely be 3000 or more Euros greater than Ayra's total because of the interest her savings accrue.Ayra's total will likely be much greater than Zimi's total because of the safety her savings have.Ayra's total and Zimi's total are likely similar if not the same
Question
Ayra and Zimi each want to save money. They each make a plan to save 200 Euro a month for the next 10 years. Ayra puts her savings into a box each month. Ximi puts her savings into a bank account paying 2.5% interest. At the end of 10 years how would you expect the totals saved to compare?Group of answer choicesZimi's total will be 2.5% greater than Ayra's total because the interestZimi's total will likely be more than ten times Ayra's total because of the time of the savings.Zimi's total will likely be 3000 or more Euros greater than Ayra's total because of the interest her savings accrue.Ayra's total will likely be much greater than Zimi's total because of the safety her savings have.Ayra's total and Zimi's total are likely similar if not the same
Solution
Zimi's total will likely be 3000 or more Euros greater than Ayra's total because of the interest her savings accrue. This is because the interest on Zimi's savings will compound over the 10 years, leading to a significantly larger total amount saved compared to Ayra, who does not earn any interest on her savings.
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hoose the correct option. Sarah was disappointed by the returns she got on investing in AO Bank. She wants to create her savings account in a new bank that pays a better interest rate of 3.5%. If she moves Rs. 2,500 to the new bank, how long will it take for her to earn Rs. 700 as interest? (Apply simple interest) Options 8 years 6 years 4 years 2 years
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