For the past five years, Ludmilla has been investing $500 at the end of every month into
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For the past five years, Ludmilla has been investing $500 at the end of every month into an investment earning 3% compounded monthly.
a. How much is the investment worth today?
b. How much of the answer in Part (a) represents interest earned over the course of the five years?
c. How much more interest would Ludmilla have earned if her investment had earned 6% compounded monthly instead of 3% compounded monthly?
d. Explain why the total interest earned at 6% compounded monthly in Part (c) is more than double the amount of interest earned at 3% compounded monthly in Part (b).
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Related Book For
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
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