Respuesta :
Answer:
Amount in Javier's Account is $1183.68(after 10 years) and $6633.84(after 30 years)
Amount in Maria's Account is $1186.94 (after 10 years) and $6688.83(after 30 years)
The Interest Rate is Not Sufficient.
Step-by-step explanation:
At Compound Interest
Amount= P(1+r)ⁿ
where:
P=Principal,
R= Rate,
n= number of years
Javier's Principal=$500
Javier's Annual Rate =9%=0.09
I. After 10 years
Amount= P(1+r)ⁿ
= 500(1+0.09)¹⁰=500(1.09)¹⁰ =$1183.68
II. After 30 years
Amount= 500(1+0.09)³⁰=500(1.09)³⁰ =$6633.84
Maria's Principal=$500
Maria's Annual Rate=9.03%=0.0903
I. After 10 years
Amount= P(1+r)ⁿ
= 500(1+0.0903)¹⁰=500(1.0903)¹⁰ =$1186.94
II. After 30 years
Amount= 500(1+0.0903)³⁰ =500(1.0903)³⁰ =$6688.83
The Annual Rate and Time is sufficient enough to help determine which account to invest in. The longer the duration, the more the Amount of money in the Account.
