Asked by Missy
Tom and Lana both need $15,000 in 3 years. Tom finds an investment in which he can earn 8% compounded annually. Lana finds an investment in which she earns 7 7/8% interest compounded monthly. Who must invest more money now in order to get $15,000 in 3 years? How much more?
___(Tom/Lana)___ has to invest $________ more than the other one in order to have the same amount ($15,000) in 3 years.
___(Tom/Lana)___ has to invest $________ more than the other one in order to have the same amount ($15,000) in 3 years.
Answers
Answered by
Reiny
Tom:
Paym(1.08)^3 = 15000
Paym = 15000/1.08^3 = $11,907.48
Lana: monthly rate = .07875/12 = .0065625
Paym(1.0065625)^36 = 15000
Paym = 15000/1.0065625^36 = $11,852.89
etc
Paym(1.08)^3 = 15000
Paym = 15000/1.08^3 = $11,907.48
Lana: monthly rate = .07875/12 = .0065625
Paym(1.0065625)^36 = 15000
Paym = 15000/1.0065625^36 = $11,852.89
etc
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.