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16 November, 22:29

Patrick and Brooklyn are making decisions about their bank accounts. Patrick wants to deposit $300 as a principle amount, with an interest of 3% compounded quarterly. Brooklyn wants to deposit $300 as the principle amount, with an interest of 5% compounded monthly. What method shoud they use in order to earn more money after two year?

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  1. 16 November, 23:15
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    After solving:

    Brooklyn's future worth ($331.48), which was compounded monthly is greater than Patrick's ($ 318.48), which was compounded quarterly. Therefore to earn more money in two years, compounded monthly is better than compounded quarterly.
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