Question 1146962
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A 4% interest rate, compounded annually


<pre>
    Future value is  FV = {{{4000*(1+0.04)^20}}} = 8764.49 dollars.
</pre>


A 2% interest rate, compounded quarterly. 


<pre>
    Future value is  FV = {{{4000*(1+0.02/4)^(20*4)}}} = 5961.35  dollars.
</pre>


Compare and make your decision.