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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 semi-annually. To the nearest dollar, how much more money did Patricia's investment earn than that of Jose?

 Apr 12, 2021
 #1
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Jose  =   50000 ( 1.04)^2

Patrcia   = 50000 ( 1 + .04/2)^ (2 * 2)

 

So

 

50000  (1 + .04/2)^(2 *2)   -  50000 (1.04)^2   ≈   $42

 

 

cool cool cool

 Apr 12, 2021

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