Question

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

Answer 1

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

Which method results in more money in 2 years?

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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