Question

The formula for determining interest compounded monthly is A = P(1 +r/12 )^12t, where A represents the amount invested after t years, P the principal invested, and r the interest rate. Jimmy invests $1,000 at an interest rate of 10% for 3 years, while Jenny invests $1,000 at an interest rate of 5% for 6 years. Determine the amount of return gained by Jimmy and Jenny. In complete sentences, summarize your results.

Answer 1

You need to use the formula to work out the amount for Jenny and Jimmy first. Do you have the answers to this?

Answer 2

Also interest gained is I=A-P where A is the final amount and P is the principle or amount first invested.

Answer 3

I do not have those answers.

Answer 4

Jimmy: A = $1,000 ( 1 + .1/12 ) ^36 = $1,346.18
Jenny: A = $1,000 ( 1 + .05/12 ) ^72 = $4,413.15

Answer 5

Jimmy gains: $1,346.18 - 1,000 = $346.18
Jenny gains: $4,413.15 - 1,000 = $3,413.15

Answer 6

Well since Chlorophyll has given you the answers what can you say about the results?

Answer 7

@claireshowers say something!

Answer 8

@claireshowers Don't forget to write the conclusion, It's for your own benefit!