Quantcast

A community for students. Sign up today!

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

mitchelsewbaran

  • 2 years ago

The formula for determining interest compounded monthly is A = P(1 +r/12 )^(12t), where A represents the amount invested after t years, P the principal invested, and r the interest rate. Jimmy invests $2,000 at an interest rate of 10% for 4 years, while Jenny invests $2,000 at an interest rate of 5% for 8 years. Determine the amount of return gained by Jimmy and Jenny. Summarize your results from Part 1, including how you arrived at your answer.

  • This Question is Closed
  1. Kira_Yamato
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    For Jimmy: P = 2000, r = 0.1, t = 4 A(Jimmy) = 2000(1 + 0.1/12)^(12(4)) = $2978.71 Gain from interest = $(2978.71 - 2000) = $978.71 For Jenny: P = 2000, r = 0.05, t = 8 A(Jenny) = 2000 (1 + 0.05/12)^(12(8)) = $2981.17 Gain from interest = $(2981.17 - 2000) = $981.17

  2. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Ask a Question
Find more explanations on OpenStudy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.