Question

Please Help,

Answer 1

Answer:  No, He is not correct.

Step-by-step explanation:

Let the total amount deposited = P

Then the Amount in 1 year at the annually compound rate of 7%,

$A_1 = P(1+\frac{7}{100} )$

$A_1 = 1.07 P$

And, the amount in 1 year at the quarterly compound rate of 2%,

$A_2 = P(1+\frac{2}{100})^4$  ( By the formula,  $A = P(1+ \frac{r/n}{100} )^{4n}$ )

$A_2 =1.08243216 P$

But,  $A_1$

Therefore, He is not correct.