The formula for determining interest compounded monthly is A = P(1 + r/12)12^t, where A represents the amount invested after t years, P the principal invested, and r the interest rate. Jimmy invests $1,500 at an interest rate of 10% for 4 years, while Jenny invests $1,500 at an interest rate of 5% for 6 years.

Part 1: Determine the amount of return gained by Jimmy and Jenny.

Part 2: Summarize your results from Part 1, including how you arrived at the answer.

Question

The formula for determining interest compounded monthly is A = P(1 + r/12)12^t, where A represents the amount invested after t years, P the principal invested, and r the interest rate. Jimmy invests $1,500 at an interest rate of 10% for 4 years, while Jenny invests $1,500 at an interest rate of 5% for 6 years.

Part 1: Determine the amount of return gained by Jimmy and Jenny. 

Part 2: Summarize your results from Part 1, including how you arrived at the answer.

anonymous · Answer

|dw:1343334194270:dw|