Register
Over 2 years, how much more does $2000 in a savings account with an APR of 4.2% compounded semiannually earn in interest than the same amount in a savings account with an APR of 3.6% compounded monthly?
38.4k views
0 votes
Over 2 years, how much more does $2000 in a savings account with an APR of 4.2% compounded semiannually earn in interest than the same amount in a savings account with an APR of 3.6% compounded monthly? A. $24.29 B. $12.15 C. $6.07 D. $48.58

User Eric Snow
by
7.7k points

2 Answers

5 votes

Answer:

$24.29 is correct

Explanation:

User Clns
by
8.6k points
2 votes
Below is the solution:

A = 2000[1 + (.042/2)]^(2*2)
A = 2173.366476962
A = 2173.37
I = 2173.37 - 2000
I = 173.37

A = 2000[1 + (.036/12)]^(12*2)
A = 2149.0790382667085294501721261072
A = 2149.08
I = 2149.08 - 2000
I = 149.08

173.37 - 149.08 = 24.29
User Radi Cho
by
8.5k points
← Prev Question Next Question →

Related questions

Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.5m questions

12.2m answers

Other Questions

How do you can you solve this problem 37 + y = 87; y =
What is .725 as a fraction
How do you estimate of 4 5/8 X 1/3
A bathtub is being filled with water. After 3 minutes 4/5 of the tub is full. Assuming the rate is constant, how much longer will it take to fill the tub?
i have a field 60m long and 110 wide going to be paved i ordered 660000000cm cubed of cement  how thick must the cement be to cover field
Link Copied!