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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 9, 2019
 #1
avatar+19324 
+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...cheeky

 
 Oct 9, 2019
 #2
avatar+1228 
0

What would I have to calculate.

 
 Oct 9, 2019
 #3
avatar+19324 
0

how much more money did Patricia's investment earn than that of Jose?

 
ElectricPavlov  Oct 10, 2019

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