SOLUTION: Anne and Michael both put $5000 in a savings account. Anne gets 8% APR compounded monthly. In Micheal's account, the interest is compounded annually. Two years later the amount in

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Question 380043: Anne and Michael both put $5000 in a savings account. Anne gets 8% APR compounded monthly. In Micheal's account, the interest is compounded annually. Two years later the amount in Annie's account is exactly the same as the amount in Micheal's account. What can you conclude about the interest rate for Micheal's account?
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
a=5000(1+0.08/12)^12*2
a=5000(1.00667)^24
a=5000*1.17298
a=5864.90
Micheal's rate is higher, about 8.3%