Question

How much more would you earn in the first investment than in the second investment? $47,000 invested for 30 years at 12% compounded annually

Answer 1

Step-by-step explanation:

For a principal, P compounded k times in a year for a period of t years, the balance at compound interest is found using the formula:

`A=P(1+(r)/(k))^(kt)`

First Investment

• P=$47,000

,

• k=1

,

• r=12%=0.12

,

• t=40 years

Therefore: