Assume that the accounts described in the exercises have no other deposits or withdrawals except for what is stated. Round all answers to the nearest dollar, rounding up to the nearest dollar in present-value problems. Assume 360 days in a year. You deposit $3000 in an account that pays 3.5% interest compounded once a year. Your friend deposits $2500 in an account that pays 4.8% interest compounded monthly. a. Who will have more money in their account after one year? How much more? b. Who will have more money in their account after five years? How much more? c. Who will have more money in their account after 20years? How much more?
Assume that the accounts described in the exercises have no other deposits or withdrawals except for what is stated. Round all answers to the nearest dollar, rounding up to the nearest dollar in present-value problems. Assume 360 days in a year. You deposit $3000 in an account that pays 3.5% interest compounded once a year. Your friend deposits $2500 in an account that pays 4.8% interest compounded monthly. a. Who will have more money in their account after one year? How much more? b. Who will have more money in their account after five years? How much more? c. Who will have more money in their account after 20years? How much more?
Solution Summary: The author explains how the investment with the rate of 3.5% and which is compounded once in a year earned more by 482.
Assume that the accounts described in the exercises have no other deposits or withdrawals except for what is stated. Round all answers to the nearest dollar, rounding up to the nearest dollar in present-value problems. Assume 360 days in a year.
You deposit $3000 in an account that pays 3.5% interest compounded once a year. Your friend deposits $2500 in an account that pays 4.8% interest compounded monthly.
a. Who will have more money in their account after one year? How much more?
b. Who will have more money in their account after five years? How much more?
c. Who will have more money in their account after 20years? How much more?
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