anonymous
  • anonymous
kale and merricat are making decisions about their bank accounts. kale wants to deposit $200 as a principle amount, with an interest of 2% compounded quarterly. mericat wants to deposit $200 as the principle amount, with an interest of 4% compounded monthly.
Mathematics
  • Stacey Warren - Expert brainly.com
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SOLVED
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schrodinger
  • schrodinger
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anonymous
  • anonymous
@ganeshie8 Please help me!
jim_thompson5910
  • jim_thompson5910
what do you have so far?
anonymous
  • anonymous
Nothing :( Well, I have a formula?

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More answers

jim_thompson5910
  • jim_thompson5910
which formula do you have
anonymous
  • anonymous
a=p(1+r/n)^nt
anonymous
  • anonymous
I could be wrong
jim_thompson5910
  • jim_thompson5910
good
jim_thompson5910
  • jim_thompson5910
that formula will be used here
anonymous
  • anonymous
Yay:)
jim_thompson5910
  • jim_thompson5910
`Harrison wants to deposit $200 as a principle amount, with an interest of 2% compounded quarterly` P = 200 is the principal r = 0.02 is the interest rate in decimal form (2% = 2/100 = 0.02) n = 4 is the number of times you compound the money per year (quarterly = 4 times) t = 2 years
anonymous
  • anonymous
ok so then we would just plug it in right? n=200(1+0.02/4)^(2)(4) right?
jim_thompson5910
  • jim_thompson5910
yep
jim_thompson5910
  • jim_thompson5910
then compute it with a calculator
anonymous
  • anonymous
I got 204.0401
jim_thompson5910
  • jim_thompson5910
I'm getting something slightly higher
anonymous
  • anonymous
Really? Maybe I typed it in wrong
anonymous
  • anonymous
oh okay I got 408.0602! Sorry :)
jim_thompson5910
  • jim_thompson5910
did you type in `200*(1+0.02/4)^(4*2)` ?
anonymous
  • anonymous
yes
anonymous
  • anonymous
I got 208.141409 when I did that
jim_thompson5910
  • jim_thompson5910
I got that too
jim_thompson5910
  • jim_thompson5910
208.141409 rounds to 208.14
anonymous
  • anonymous
Ok :) What do we do next?
jim_thompson5910
  • jim_thompson5910
now we move onto the next part `Sherrie wants to deposit $200 as the principle amount, with an interest of 4% compounded monthly.` what are P, r, n and t?
anonymous
  • anonymous
p=200 r=0.04 t=12? bcuz 12 months in a year
jim_thompson5910
  • jim_thompson5910
yep
jim_thompson5910
  • jim_thompson5910
oh wait, no n = 12 and t = 2 since the time frame is 2 years
anonymous
  • anonymous
oh sorry :)
jim_thompson5910
  • jim_thompson5910
I forgot to post that `Explain which method results in more money after 2 years.` so each person has their money in for t = 2 years
anonymous
  • anonymous
Hahaha it's fine:) I get it now
anonymous
  • anonymous
do we plug those value in the same formula?
jim_thompson5910
  • jim_thompson5910
yes you'll plug in P = 200, r = 0.04, n = 12 and t = 2
anonymous
  • anonymous
K hold on please
anonymous
  • anonymous
216.63?
jim_thompson5910
  • jim_thompson5910
I'm getting the same thing
anonymous
  • anonymous
So the answer would be Sherrie?
jim_thompson5910
  • jim_thompson5910
Harrison will have 208.14 Sherrie will have 216.63
jim_thompson5910
  • jim_thompson5910
yep she has more money
anonymous
  • anonymous
Thank-you so much!!!!
jim_thompson5910
  • jim_thompson5910
no problem

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