Question

MEDAL AND FAN!!!!

Harrison and Sherrie are making decisions about their bank accounts. Harrison wants to deposit $200 as a principle amount, with an interest of 2% compounded quarterly. Sherrie wants to deposit $200 as the principle amount, with an interest of 4% compounded monthly. Explain which method results in more money after 2 years.

Answer 1

@ganeshie8

Answer 2

@nono266

Answer 3

2% compounded quarterly is .5% each quarter (2% ÷ 4)
So the principal (200) is multiplied by 1.005 ⁸ (8 because there are 8 quarters in 2 years)

200 x 1.005 ⁸ = $208.14 in 2 years (rounded to the nearest penny)

4% over 12 months is 1/3% every month or .003333
200 x 1.00333²⁴ (24th power since there are 24 months in 2 years) $216.61 in 2 years rounded to the nearest penny.
The monthly scenario is better.

Answer 4

Sherrie

Answer 5

I did this one today

Answer 6

ok i'm confused too many answers

Answer 7

The correct answer is Sherrie

Answer 8

I did this one today