At the end of seven years, Shawn would have $34,147 in the account.
The interest accumulated in Shawn's account would be $9,947.
At the end of seven years, Abraham would have $28,127 in the account.
The interest accumulated in Abraham's account would be $3,147.
Shawn received more interest than Abraham because he initially deposited a larger lump sum of money into the account, allowing for more interest to accumulate over time. Additionally, the compounding effect of monthly interest also contributed to Shawn receiving more interest compared to Abraham.
To save money to use as a down payment for a home in seven years, Shawn deposits a lump sum of $25200 in an account that pays 4.4% interest, compounded monthly.
How much does Shawn have in the account at the end of seven years? Round your answer to the nearest dollar.
$
How much interest has this account accumulated?
$
Abraham is also saving money for a down payment on a home. Abraham makes a deposit of $300 each month in an account that pays 4.4% interest, compounded monthly.
How much does Abraham have in the account at the end of seven years?
$
How much interest has this account accumulated?
$
Why did Shawn recieve more interest than Abraham?
1 answer