Homework Help: Math

Posted by Michael on Thursday, November 3, 2011 at 11:10pm.

Which would amount to more money on December 31 of this year: $500 invested on January 1st of this year at 10% annual interest compounded quarterly; or a lump sum payment of $580?

(a) the $500 investment (b) both are the same
(c) the $580 lump sum (d) there is not enough information to determine

Math - drwls, Friday, November 4, 2011 at 1:44am
500*(1 + .025)^4 = 551.91

The lump sum ($580) is more.

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