QuestionAugust 12, 2025

John just opened a savings account and wants to maximize the amount of interest he earns. Which action or actions enable him to earn the MOST interest? A. Selecting an account with a higher interest rate B. Leaving his money in the account for a long period of time C. Transferring money into his checking account each month D. Higher interest rate AND leaving money in for a longer time

John just opened a savings account and wants to maximize the amount of interest he earns. Which action or actions enable him to earn the MOST interest? A. Selecting an account with a higher interest rate B. Leaving his money in the account for a long period of time C. Transferring money into his checking account each month D. Higher interest rate AND leaving money in for a longer time
John just opened a savings account and wants to maximize the amount of interest he earns.
Which action or actions enable him to earn the MOST interest?
A. Selecting an account with a higher interest rate
B. Leaving his money in the account for a long period of time
C. Transferring money into his checking account each month
D. Higher interest rate AND leaving money in for a longer time

Solution
4.5(194 votes)

Answer

D. Higher interest rate AND leaving money in for a longer time Explanation 1. Identify factors affecting interest Interest earned depends on the interest rate and the time money is left in the account. 2. Evaluate options A higher interest rate increases earnings, and leaving money longer allows compound interest to accumulate. 3. Determine best action Combining a higher interest rate with leaving money for a longer period maximizes interest.

Explanation

1. Identify factors affecting interest<br /> Interest earned depends on the interest rate and the time money is left in the account. <br />2. Evaluate options<br /> A higher interest rate increases earnings, and leaving money longer allows compound interest to accumulate.<br />3. Determine best action<br /> Combining a higher interest rate with leaving money for a longer period maximizes interest.
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