Answer:
After 5 years, Cam's account will have $ 616.04 while Madison's account will have $ 638.53.
Step-by-step explanation:
Given that Cam and Madison were investing money into two different accounts, both investing $ 550 each, and Cam invested into an account at an annual interest rate of 2.7% compounded monthly while
Madison invested into an account that had an annual interest rate of 3% compounded quarterly, to determine the balances of both accounts after 5 years, the following calculations must be performed:
Cam
X = 550 (1 + 0.027 / 12) ^ 5x12
X = 550 (1 + 0.027 / 12) ^ 60
X = 616.04
Madison
X = 550 (1 + 0.03 / 3) ^ 5x3
X = 550 (1 + 0.03 / 3) ^ 15
X = 638.53
Thus, after 5 years, Cam's account will have $ 616.04 while Madison's account will have $ 638.53.
