You deposit $2600 in an account that pays 4% interest
Chapter 8, Problem 39(choose chapter or problem)
Assume that the accounts described in the exercises have no other deposits or withdrawals except for what is stated. Round all answers to the nearest dollar, rounding up to the nearest dollar in present value problems. Assume 360 days in a year.
You deposit $2600 in an account that pays 4% interest compounded once a year. Your friend deposits $2200 in an account that pays 5% interest compounded monthly.
a. Who will have more money in their account after one year? How much more?
b. Who will have more money in their account after five years? How much more?
c. Who will have more money in their account after 20 years? How much more?
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