Posted by **Jessie** on Wednesday, July 15, 2009 at 5:27pm.

The Investment Problem. Suppose that Rod invests $1,000 at 6% compounded daily and Sheila invests $1,000 at 7% (per year) simple interest. In how many years will Rod’s investment be worth more than Sheila’s investment? Complete the following table to answer your question (the amounts for the first 2 years are given; you may not have to do all 10 years):

Year 6% compounded daily 7% simple

1 $1,061.83 $1,070.00

2 $1,127.49 $1,140.00

3

4

5

6

7

8

9

10

- math -
**DrBob222**, Wednesday, July 15, 2009 at 5:33pm
You didn't give the table. You can't copy and paste; you must type it in.

- math -
**Aleah**, Wednesday, July 15, 2009 at 6:48pm
Here is the table:

Year 6% Compounded daily 7% simple

1 $1,061.83 $1,070.00

2 $1,127.49 $1,140.00

3

4

5

6

7

8

9

10

- math -
**DrBob222**, Wednesday, July 15, 2009 at 7:51pm
For 6% compounded daily, do this.

[(0.06/365)+ 1]^365 = 1.06183 and that x 1000 = $1061.83 for year 1.

For year 2, just take 1061.83*1.06183 = $1127.49.

For year 3, it will be 1127.49 x 1.06183 = ?? etc.

For 7% simple,

For year 1 it is $1,000 x 0.07 = 70.00 and 1,000 + 70.00 = $1070.00

For year 2 it is 1070.00 x 0.07 = 74.90 and 1,070.00 + 70.90 = 1,140.90. etc.

## Answer This Question

## Related Questions

- Algebra - Greta invests $10,000 in an investment that pays 3% interest, ...
- MAAAATTTTHHHHHH - Franco invests some money at 6.9%/a compounded annually and ...
- math - Tamara invests $30,000 in an account earning 7% interest per year over ...
- S.P - Tamara invests $30,000 in an account earning 7% interest per year over the...
- maths - Tamara invests $30,000 in an account earning 7% interest per year over ...
- math - Carla invests $3,000, at 8% interest, compounded quarterly for 1 year. ...
- math - Andrew wants supplement his pension with investment interest if he ...
- math - Anny invests $3,000, at 6% interest, compounded monthly for 1 year. Use ...
- investing - Lily invests $4,000, at 6% interest, compounded quarterly for 5 ...
- business math - Anny invests $3,000, at 6% interest, compounded monthly for 1 ...

More Related Questions