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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. Explain which method results in more money after 2 years. Show all work.

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Lampa20
For this we will use formula that is letting us to input: interest rate, starting funds, how often intereset rate is implemented, period we are observing. Formula looks like this:

[tex]M = S(1+ \frac{i}{cp})^cp*y [/tex]

where M is money, S is starting funds, "i" is interest rate, cp is compounding period and y is number of years. now we express and calculated for both of them and get

M = 318,479 for Patricks investement.

M = 331,482 for Brooklyn.

Which means Brooklyn's method will pay of more.

Compound interest results in more money after 2 years.Compound interest results in more money after 2 years than simple interest.

What is the definition of simple interest?

Simple interest is employed in various industries, including banking, finance, and automobiles.

For this, we will employ a formula that allows us to enter the following data: interest rate, initial funding, the frequency with which interest rates are applied, and the observation duration. The formula is as follows:

[tex]\rm M = S(1+ \frac{i}{c_p})c_p \times y[/tex]

M is the amount of money,

S is the initial investment = $300

I is the interest rate = 3%

cp is the compounding period,

y is the number of years = 2

M = 318,479 for Patricks investement.

M = 331,482 for Brooklyn

Hence, the amount of money for Patricks and Brooklyn will get 318,479 and 331,482.

To learn more about simple interests, refer to;

https://brainly.com/question/14031892

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