Jimmy invests $2,000 at an interest rate of 10% for 4 years, while Jenny invests $2,000 at an interest rate of 5% for 8 years. Part 1: Determine the amount of return gained by Jimmy and Jenny. (3 points) Part 2: Summarize your results from Part 1, including how you arrived at your answer.

Question

Jimmy invests $2,000 at an interest rate of 10% for 4 years, while Jenny invests $2,000 at an interest rate of 5% for 8 years.   Part 1: Determine the amount of return gained by Jimmy and Jenny. (3 points)   Part 2: Summarize your results from Part 1, including how you arrived at your answer.

anonymous · Answer

Help? I think i did something wrong
 Jimmy 2000((1+(.1/12))^(12*4) = 2978.71
Jenny: 2000((1)+(.05/12))^(12*8)= 2981.17 
using the equation a=p((1+(r/12))^(12t)

phi · Answer

the problem does not say if this is compound interest or simple interest (I= P*rate*time).  

You assumed compounded monthly. You should state so.  In any case, the return gained is just the interest (not the principal) so subtract off the 2000.00

anonymous · Answer

Oh gosh thank you!

anonymous · Answer

Do you know if i did the math right though?