Question 1163100
.
What is the difference between investing $4,000 for two years at 7% compound interest computed semi-annually 
or invest them {{{highlight(for_two_years)}}} at 5% computed compound interest quarterly basis?
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<pre>

The difference is


    {{{4000*(1+0.07/2)^(2*2) - 4000*(1+0.05/4)^(4*2)}}} = 172.15  dollars.   <U>ANSWER</U>
</pre>

The formulas are self-explanatory.


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On compounded interest problems, &nbsp;see the lesson

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/percentage/lessons/Compound-interest-percentage-problem.lesson>Compounded interest percentage problems</A> 

in this site.