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Jose invested \(\$50,\!000\) for 2 years at an annual interest rate of 4 percent compounded yearly. Patricia invested \(\$50,\!000\) for the same period of time, at the same interest rate, but the interest was compounded quarterly. To the nearest dollar, how much more money did Patricia's investment earn than that of Jose?

 Oct 15, 2019

Best Answer 

 #1
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Patricia's investment =$50,000 x 1.01^8 =$54,142.84

 

Jose's investment       =$50,000 x 1.04^2 =$54,080.00

 

The difference           =$54,142.84 - $54,080.00 =$62.84 - Extra money that Patricia's investment earned.

 Oct 15, 2019
 #1
avatar
+1
Best Answer

Patricia's investment =$50,000 x 1.01^8 =$54,142.84

 

Jose's investment       =$50,000 x 1.04^2 =$54,080.00

 

The difference           =$54,142.84 - $54,080.00 =$62.84 - Extra money that Patricia's investment earned.

Guest Oct 15, 2019

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