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August 23, 2014

August 23, 2014

Posted by **Christy** on Tuesday, September 15, 2009 at 1:19pm.

If I calculated correctly the person that earned 400$ over 2 years on a 4000$ investment. their interest earned was 5%

for the person who earned 960$ over 4 years on a 6000$ investment. their interest was 1.5

Am I correct, or what am I doing wrong ?

- math check my answer thanks -
**bobpursley**, Tuesday, September 15, 2009 at 2:06pmI am not certain how the 960 was paid, so I will assume it was paid at the end.

6960=6000(1+i)^4

which brings i to be 3.78 percent.

check me.

for the other, I get 4.88 percent

I made no assumptions about compounding.

- math check my answer thanks -
**Christy**, Tuesday, September 15, 2009 at 2:22pmthank you Bob, I am sure you are correct but I will check just so I can understand it for next time. Thanks

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