Question

Staci invested $900 three (3) years ago. Her investment paid 10.8 percent interest compounded monthly. Staci's twin sister Shelli invested $800 at the same time. But Shelli's investment earned 11 percent interest compounded quarterly. How much is each investment worth today? Do not round intermediate calculations. Round your answers to the nearest cent. Staci's investment worth today: $ Shelli's investment worth today: $

Answer 1

Staci's investment is worth today $1,242.58.

Shelli's investment is worth today $1,107.83.

What is the future value of an investment?

The future value of an investment is the present value compounded periodically at an interest rate.

The future value can be determined using an online finance calculator as below.

Data and Calculations:

Staci's investment = $900

Investment period = 3 years

Interest rate = 10.8% compounded monthly

Stack's twin investment = $800

Investment period = 3 years

Interest rate = 11% compounded quarterly

Staci's investment:

N (# of periods) = 36 months (3 x 12)

I/Y (Interest per year) = 10.8%

PV (Present Value) = $900

PMT (Periodic Payment) = $0

Results:

FV = $1,242.58

Total Interest = $342.58

Shelli's investment:

N (# of periods) = 12 quarters (3 x 4)

I/Y (Interest per year) = 11%

PV (Present Value) = $800

PMT (Periodic Payment) = $0

Results:

FV = $1,107.83

Total Interest $307.83

Thus, the worth of Staci's investment today is $1,242.58, while Shell's is $1,107.83.

Learn more about determining future value at brainly.com/question/24703884

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