Question

Harrison and Sherrie are making decisions about their bank accounts. Harrison wants to deposit $300 as a principal amount, with an interest of 5% compounded quarterly. Sherrie wants to deposit $300 as the principal amount, with an interest of 3% compounded monthly. Explain which method results in more money after 2 years. Show all work someone please help me i beg

Answer 1

Sherrie's method will make more money.

Explanation:

They both deposit 300 dollars, since Harrison is compounding at 5% quarterly she will be making $15 every quarter and since there are 4 quarters per yr at the end of the year Harrison will be sitting at $360.

Whereas Sherrie is compounding at 3% per month so she will be making $9 per month and multiply that by 12 she will be sitting at $408 by the end of the year hence Sherrie makes more.