Final answer:
To compare investing $2250 at 11% compounded monthly for 20 years with investing $2250 at 13% compounded monthly for 20 years, we can calculate the future value of each investment using the compound interest formula.
Step-by-step explanation:
To compare investing $2250 at 11% compounded monthly for 20 years with investing $2250 at 13% compounded monthly for 20 years, we can calculate the future value of each investment using the compound interest formula.
For the first investment at 11% interest rate, the future value can be calculated using the formula A = P(1 + r/n)^(nt), where A is the future value, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the time in years. Plugging in the given values, we have A1 = 2250(1 + 0.11/12)^(12*20).
For the second investment at 13% interest rate, we can use the same formula with the respective values A2 = 2250(1 + 0.13/12)^(12*20).
Calculating the values, we find that the future value of the first investment is approximately $9548.63 and the future value of the second investment is approximately $11967.46. Therefore, investing $2250 at 13% compounded monthly for 20 years will provide a higher return.