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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.

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  1. laughoutloud
    • one year ago
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    @ganeshie8

  2. laughoutloud
    • one year ago
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    @nono266

  3. anonymous
    • one year ago
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    2% 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.

  4. carolinar7
    • one year ago
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    Sherrie

  5. carolinar7
    • one year ago
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    I did this one today

  6. laughoutloud
    • one year ago
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    ok i'm confused too many answers

  7. anonymous
    • one year ago
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    The correct answer is Sherrie

  8. carolinar7
    • one year ago
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    I did this one today

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