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Jon Deposits $7,050 into an account paying 5% annual interest compounded quarterly and Sara deposits $4,867 into an account paying 10% annual interest compounded daily who will have more money after 1 year? How much more will that person have? Show and explain all work.

Respuesta :

The person that would have more money at the end of the year is Sara.

Who would have more money?

The formula that would be used to determine the future value of an amount is:

FV = P (1 + r/m)^nm

  • FV = Future value
  • P = Present value
  • R = interest rate
  • m = number of compounding
  • N = number of years

Jon = $7050 x (1 + 0.05/4)^4 = $7409.16

Sara = $4867 x (1 + 0.1 / 365)^365 = $5378.79

To learn more about future value, please check: https://brainly.com/question/18760477

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