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?
Answer provided by our tutors
Here,
Present Value= $50000
Interest Rate = 1.6%
So, total money of Quinn after 5 years = 50000*(1+i/m)n*m
= 50000* (1+0.0160/2)5*2
= 50000* (1+0.008)10
= $54147.115