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?

Logic Oct 9, 2019

#1**+1 **

Jose's final amount will be FV FV = 50000(1.04)^2 .04 is the interest 2 is the years

Patricia will have 50000(1.01)^8 .01 is the periodic interst rate each period (3mos) total periods = quarterly x 2 yrs =8

I'll let yu calc the diff...

ElectricPavlov Oct 9, 2019

#2

#3