Amy deposited $1,000 into an account that earns 8% annual interest compounded every 6 months.
Bob deposited $1,000 into an account that earns 8% annual interest compounded quarterly.
If neither Amy nor Bob makes any additional deposits or withdrawals, in 6 months how much more money will Bob have in his account than will Amy have in hers?
Why is t=1/2? Thanks
What even is the question?
Amy deposited $1,000 into an account that earns 8% annual interest compounded every 6 months.
Bob deposited $1,000 into an account that earns 8% annual interest compounded quarterly.
If neither Amy nor Bob makes any additional deposits or withdrawals, in 6 months how much more money will Bob have in his account than will Amy have in hers?
What is t?
time period
because it’s asking amount after 6 months.