Problema Solution
Quinn and Julius inherited $50,000 each from their great-grandmother’s estate. Quinn invested her money in a 5-year CD paying 1.6% interest compounded semiannually. Julius deposited his money in a money market account paying 1.05% compounded monthly. How much total money will Quinn have after 5 years?
How much total money will Julius have after 5 years?
Answer provided by our tutors
Initial amount=$50000
rate=0.016
Number of years=5
Amount after 5 years compounded semiannually= 50000(1+0.016/2)^5*2
=50000(1.08)^10
=50000*2.16
=108000
Amount after 5 years compounded semiannually=$108000