+1245 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?
$50,000 x 1.04^2 =
$50,000 x 1.0816 = $54,080 - Jose's investment after 2 years.
$50,000 x (1 + .04/4]^(2*4) =
$50,000 x 1.01^8 =
$50,000 x 1.0828567056280801 =$54,143 - Patricia's investment after 2 years.
$54,143 - $54,080 =$63 - extra interest that Patricia earned on her investment.
