Ask Question
27 August, 13:04

Robert and rosie both invested $7,500 four years ago. they both earned a 15% return, however robert earned a simple return of 15% and rosie earned a compounded return of 15%. how did this difference in compounding affect their investments' value today? robert will have $1,117.55 more than rosie rosie will have $1,117.55 more than robert robert will have $2,250.00 more than rosie rosie will have $2,250.00 more than robert their investments will be worth the same

+1
Answers (1)
  1. 27 August, 13:15
    0
    The difference between simple and compound interest is significant because the interest is higher when using compounding. Robert's investment amounted to $12,000 after 4 years while Rosie's investment after 4 years totaled to $13,117.55 with a difference of $1,117.55.

    Thus, Rosie will have $1,117.55 more than Robert.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Robert and rosie both invested $7,500 four years ago. they both earned a 15% return, however robert earned a simple return of 15% and rosie ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers