SOLUTION: Frank wants to invest $4,000 into a savings account. He is trying to choose between two different accounts. Determine how much money Frank would have in 20 years using each of the

Question 1146962: Frank wants to invest $4,000 into a savings account. He is trying to choose between two different accounts. Determine how much money Frank would have in 20 years using each of the following accounts. Then highlight which one would be the best.
A 4% interest rate, compounded annually.
A 2% interest rate, compounded quarterly.

Separate question

Found 2 solutions by ikleyn, richwmiller:
Answer by ikleyn(52781) (Show Source): You can put this solution on YOUR website!
.

A 4% interest rate, compounded annually

Future value is FV = = 8764.49 dollars.

A 2% interest rate, compounded quarterly.

Future value is FV = = 5961.35 dollars.

Compare and make your decision.

Answer by richwmiller(17219) (Show Source): You can put this solution on YOUR website!
I removed your separate question.
Submit one problem per post and limit yourself to 5 posts daily.
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