zperk525 wrote:
Don't approach it from the perspective of trying to solve the problem. Look at it from the perspective of if interest earned on the account w/ 3.8% interest will be greater than, less than, or equal to the interest earned in account A. So..
Account A: 10000*1.0404=10,404.
Total interest earned= 10404-10000=404
Account B (compounded semi annually): 3.8/2=1.9
10000*1.019=10190....10190*1.019=10383.61
Total interest earned=10383.61-10000-383.61
So, if the interest earned from both accounts were to be equal (must be equal to 404) the interest rate on account B must be greater than 3.8%. So answer A should be correct.
Thank u, but I want to understand why my answer is wrong