Q13:
On a certain day, Tim invested $1,000 at 10 percent annual interest, compounded annually, and Lana invested $2,000 at 5 percent annual interest, compounded annually. The total amount of interest earned by Tim’s investment in the first 2 years was how much greater than the total amount of interest earned by Lana’s investment in the first 2 years?
A. $5
B. $15
C. $50
D. $100
E. $105
Answer: A算了N遍还是得105,
First year's earning for Tim are: 1000*0.1=100
second year's earing for Tim are: (1000+100)*0.1=110
So two year's total earning are 100+110=210
First year's earning for Lana are: 2000*0.05=100
Second year's earing for Lana are (2000+100)*0.05=105
total earning for Lana are 205
The difference between Tim and Lana are 210-205=5
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