Question

Larry and Peggy are making decisions about their bank accounts. Larry wants to deposit $350 as a principle amount, with an interest of 4% compounded quarterly. Peggy wants to deposit $350 as the principle amount, with an interest of 6% compounded monthly. Explain which method results in more money after 2 years. Show all work.

Answer 1

@Kash_TheSmartGuy @perl @mathmath333

Answer 2

Which option do you believe it is?

Answer 3

What do you mean?

Answer 4

A = P(1+r/n)^nt is the formula for compound interest. Plug in the values. n is 12

Answer 5

So A = P (1 + 4/12)^12(35)?

Answer 6

350*

Answer 7

@misssunshinexxoxo

Answer 8

"Larry wants to deposit $350 as a principle amount, with an interest of 4% compounded " This option would make the most $ after 2 years :)

Answer 9

so that's it?

Answer 10

@misssunshinexxoxo

Answer 11

@misssunshinexxoxo