Question

Harrison and Sherry are making decisions about their bank accounts Harrison wants to deposit $200 as a principal amount with an interest rate of 2% compounding quarterly Sherry wants to deposit $200 as a principal now with an interest at 4% compound at monthly explain which method result in more money after two years show all work

Answer 1

Answer:

SHERRIE

- Princible P= 200

- Interest rate R= 4% or 0.04

- Number of compounds N= 12

- Time T= 2

HARRISON

- Princible P= 200

- Interest rate R= 2% or 0.02

- Number of compounds N= 4

- Time T= 2

Formula: A= P(1+r/n)^nt

Now plug in values for each person:

200(1+0.02/4)^4*2= 208.14

200(1+0.04/12)^12*2= 216.63

And as you can see, the second method (Sherrie's) is the best choice.

Explanation: