Question

Anita and Sarah both opened savings accounts with a starting balance of ₹20,000 on the same day. Anita’s bank is paying her using compound interest, but Sarah’s bank is paying her using simple interest. Both Anita and Sarah are receiving an interest rate of 10% annually. Who do you think will have more balance in two years? Explain your answer with proper steps.STEP BY STEP EXPLANATION

Answer 1

Answer:

Anita because she is recieving compounding interest which gives inetrest upon principal amount and previous interest too but in simple interest Sarah only recieved interest on her principal amount