Brandy invest \( \$ 90,000 \) into an account earning \( 4 \% \) simple interest. Alys invests \( \$ 90,000 \) into an account earning \( 4 \% \) interest compounded yearly. How much interest will Brandy earn after 5 years? Round to the nearest cent. Part 2 of 3 How much interest will Alys earn after 5 years? Round to the nearest cent.

To calculate the interest Brandy will earn after 5 years with simple interest, we use the formula: \[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \] Plugging in the numbers: \[ \text{Interest} = 90,000 \times 0.04 \times 5 = 18,000 \] So, Brandy will earn **$18,000** after 5 years. For Alys, since the interest is compounded yearly, we use the formula for compound interest: \[ A = P(1 + r)^t \] Where \( A \) is the amount after time \( t \), \( P \) is the principal, \( r \) is the annual interest rate, and \( t \) is the time in years. Calculating for Alys: \[ A = 90,000(1 + 0.04)^5 \approx 90,000(1.2167) \approx 109,503 \] The interest earned by Alys will be: \[ \text{Interest} = A - P = 109,503 - 90,000 \approx 19,503 \] Alys will earn approximately **$19,503** after 5 years.