Between simple interest at 8% and compound interest at 9%, find the higher resulting balance after investing $500 for a period of 10 years. Round the answer to two decimal places.(1 point) The higher resulting balance after investing $500 for a period of 10 years is $.
The higher resulting balance after investing $500 for a period of 10 years can be found by comparing the simple interest and compound interest.
For simple interest:
Simple Interest = Principal * Rate * Time
= $500 * 8% * 10 years
= $500 * 0.08 * 10
= $400
For compound interest:
Compound Interest = Principal * (1 + Rate)^Time - Principal
= $500 * (1 + 9%)^10 - $500
= $500 * (1 + 0.09)^10 - $500
= $500 * 1.09^10 - $500
= $500 * 1.938747 - $500
≈ $969.37
Therefore, the higher resulting balance after investing $500 for a period of 10 years is $969.37.