Larry and peggy are making decisions about their bank accounts. larry wants to deposit $350 as a principle amount, with an inter

Question

2 years ago

9

Larry and peggy are making decisions about their bank accounts. larry wants to deposit $350 as a principle amount, with an inter

est of 4% compounded quarterly. peggy wants to deposit $350 as the principle amount, with an interest of 6% compounded monthly. explain which method results in more money after 2 years. show all work.

Mathematics

1 answer:

Kisachek [45] · Answer 1 · 2023-04-14T16:08:31+03:00

The method that results in more money after 2 years is Peggy's investment.

<h3>Which method results in more money in 2 years?</h3>

The formula for calculating the future value of an investment:

FV = P (1 + r)^nm

FV = Future value
P = Present value
R = interest rate
m = number of compounding
N = number of years

Future value of Larry's investment: $350 x [1 + (0.04/4)]^(4 x 2) = $379

Future value of Peggy's investment: $350 x [1 + (0.06/12)]^(12 x 2) = $394.51

To learn more about future value, please check: brainly.com/question/18760477

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