Consider two savings plans: Kelly deposits $415 per month in an account with an APR of 4.2% for 15 years while Ryan deposits $520 at the end of each year in an account with an APR of 4.7%. Assume the number of compoundings is the same as number of payments. Which person deposited more money? Kelly or Ryan? What was the total deposit of each person? Which person's investment strategy earned more interest? What amount of interest did that person make?
Consider two savings plans: Kelly deposits $415 per month in an account with an APR of 4.2% for 15 years while Ryan deposits $520 at the end of each year in an account with an APR of 4.7%. Assume the number of compoundings is the same as number of payments. Which person deposited more money? Kelly or Ryan? What was the total deposit of each person? Which person's investment strategy earned more interest? What amount of interest did that person make?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Consider two savings plans: Kelly deposits $415 per month in an account with an APR of 4.2% for 15 years while Ryan deposits $520 at the end of each year in an account with an APR of 4.7%. Assume the number of compoundings is the same as number of payments.
Which person deposited more money? Kelly or Ryan?
What was the total deposit of each person?
Which person's investment strategy earned more interest?
What amount of interest did that person make?
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