Sally save $25 per week and in a bank account that gives 4% annual interest. Joh

Question

Sally save $25 per week and in a bank account that gives 4% annual interest. John says $100 per month at a bank that gives 4.125% annual interest. assume that both individuals have zero dollars in their account at the beginning of the savings program. after five years who has more money in their account? Sally save $25 per week and in a bank account that gives 4% annual interest. John says $100 per month at a bank that gives 4.125% annual interest. assume that both individuals have zero dollars in their account at the beginning of the savings program. after five years who has more money in their account?

Explanation / Answer

Assuming interest is paid only on year end balance

Sally is saving 25*52=1300 per year

John is saving 100*12=1200 per year

At the end of 5 years:

amount with Sally=1300*1.04^5=1581.65

amount with John=1200*1.04125^5=1468.78

So Sally is having more money

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.