Question

Paul invests $4,000 in an account earning 9% interest compounded annually. Mike invests $4,500 in an account earning 6% interest compounded annually. Who will have more money in their account after 2 years? How much more?

Answer 1

Paul will have $4,752.4 after two years, and Mike will have $5,056.2 after two years. Subtract Paul’s total from Mike’s total for difference.