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laughoutloud
 one year ago
MEDAL AND FAN!!!!
Harrison and Sherrie are making decisions about their bank accounts. Harrison wants to deposit $200 as a principle amount, with an interest of 2% compounded quarterly. Sherrie wants to deposit $200 as the principle amount, with an interest of 4% compounded monthly. Explain which method results in more money after 2 years.
laughoutloud
 one year ago
MEDAL AND FAN!!!! Harrison and Sherrie are making decisions about their bank accounts. Harrison wants to deposit $200 as a principle amount, with an interest of 2% compounded quarterly. Sherrie wants to deposit $200 as the principle amount, with an interest of 4% compounded monthly. Explain which method results in more money after 2 years.

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anonymous
 one year ago
Best ResponseYou've already chosen the best response.02% compounded quarterly is .5% each quarter (2% ÷ 4) So the principal (200) is multiplied by 1.005 ⁸ (8 because there are 8 quarters in 2 years) 200 x 1.005 ⁸ = $208.14 in 2 years (rounded to the nearest penny) 4% over 12 months is 1/3% every month or .003333 200 x 1.00333²⁴ (24th power since there are 24 months in 2 years) $216.61 in 2 years rounded to the nearest penny. The monthly scenario is better.

carolinar7
 one year ago
Best ResponseYou've already chosen the best response.1I did this one today

laughoutloud
 one year ago
Best ResponseYou've already chosen the best response.0ok i'm confused too many answers

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0The correct answer is Sherrie

carolinar7
 one year ago
Best ResponseYou've already chosen the best response.1I did this one today
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