In each case you have an ordinary annuity whose future value you have to find. One compounds monthly and the other annually. A 44% interest rate is quite unrealistic, but that does not deter you from solving the problem. You can use a formula, spreadsheet function, or a financial calculator. The calculator is best, but you still have to understand the concepts of annuities and compound interest. The variables for Yolanda are
PV = 0
PMT = 550
i% = 44%/12=3.6667%
N = 15 yrs * 12 = 180
FV = ?
For Zach:
PV = 0
PMT = 6,600
i% = 44%
N = 15 yrs
FV = ?
Yolanda will have $9,782,954.86
Zach will have $3,545,644,71
