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

Question

WickedHeart · Answer

@ananazzaa

What would you say the answer would be?

ananazzaa · Answer

I dont understand this problem at all

WickedHeart · Answer

@ananazzaa wrote:

I dont understand this problem at all

Okay so you will use the Formula $$A = 350(1 + 0.04/4)(4 * 2)$$ $$A = 350(1 + 0.06/12)(4 * 2)? $$

WickedHeart · Answer

Let's look at the first one.
$$A=350 x (1+ (.04/4))^4$$

Try entering it like this in the calculator

Sophieee · Answer

Larry- principle = $350 interest = 4% time = 2 years Compound interest for quarterly:  Rate = R/4 = 1% Time = 4n = 4x2 = 8 years

Sophieee · Answer

Using formula

Sophieee · Answer

Peggy: Principle = $350 Interest = 6% Time = 2 years

Sophieee · Answer

Compound Interest for monthly Rate

WickedHeart · Answer

Alright the girl got it, but so you know no direct answers Allowed @sophieee

Sophieee · Answer

Kk

ananazzaa · Answer

lollll

ananazzaa · Answer

thankyou sm

ananazzaa · Answer

my bad @wickedheart

WickedHeart · Answer

@ananazzaa wrote:

my bad @wickedheart

Its cool just letting you know next time

Sophieee · Answer

Yeah I didn't know either I'm sorry

WickedHeart · Answer

@ananazzaa

Closed when done please^^

WickedHeart · Answer

@sophieee wrote:

Yeah I didn't know either I'm sorry

Its all good

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