Answer:
Jose ends up with more money with $59 more than Peter.
Step-by-step explanation:
To determine the amount they will have, you have to use the formula to calculate the future value:
FV=PV(1+r)^n
FV= future value
PV= present value
r= rate of interest
n= number of periods of time
-Peter:
FV=1,000*(1+0.04)^10
FV=1,000*1.48
FV=1,480
-Jose:
FV=900*(1+0.05)^11
FV=900*1.71
FV=1,539
Difference: $1,539-$1,480=$59
According to this, the answer is that Jose ends up with more money with $59 more than Peter.
