The easiest way to answer this question is to make both fractions have the same common denominator. In this case, we should alter the first fraction to have a denominator of 16 so that it matches the second fraction. To do this, we should multiply both the numerator and the denominator of the fraction by 2 (this is the same as multiplying by 1, which does not change the value of the fraction). This is modeled below:
4/8 * 2/2 = 8/16
Now, we can plug this value back into our original statement.
8/16 < 5/16
From comparing the numerators, we know that 5 is NOT greater than 8, so the statement is false.
Compound interest is calculated by multiplying the initial principal amount by one plus the annual interest rate raised to the number of compound periods minus one
