We use cookies to personalise content and advertisements and to analyse access to our website. Furthermore, our partners for online advertising receive pseudonymised information about your use of our website. cookie policy and privacy policy.
 
+0  
 
0
52
1
avatar+233 

Person A deposits ​$2700 in an account that pays 3​% interest compounded once a year. Person B deposits ​$2300 in an account that pays 4% interest compounded monthly.

 

a. Who will have more in their after one year? how much more?

       Round to the nearest dollar as needed

 

b.Who will have more in their after five year?how much more?

      Round to the nearest dollar as needed

 

c. Who will have more in their after 20 year?how much more?

       Round to the nearest dollar as needed

 Oct 13, 2019
edited by skye25  Oct 13, 2019
 #1
avatar+105683 
+1

Firstly neither are written properly Person A gets 3% per annum (yearly)  and Person B gets 4% per annum (yearly) 

BOTH STATED interest rates are per annum.

 

 

A will have        2700*(1.03)^n     where n is in years

 

B will have       2300*(1+0.04/12)^m     where m is in months

 

Now you can work them out

 Oct 13, 2019

20 Online Users

avatar
avatar