Posted by **Sammy** on Thursday, October 24, 2013 at 12:46pm.

Derrick is investing $1,000 at 5% interest and Anna is investing $750 at 7% interest. Both interest rates are compounded annually. When will they have the same amount saved? (Hint: 1.05t/1.07t =(1.05/1.07)t )

- MATH HELP -
**Steve**, Thursday, October 24, 2013 at 12:52pm
we want

1000*1.05^t = 750*1.07^t

(1.05/1.07)^t = 3/4

.9813^t = .75

t = log(.75)/log(.9813) = 15.24 years

Extra credit: after that point, who gets the larger amount?

- MATH HELP -
**Ennis**, Friday, November 14, 2014 at 12:22pm
calculate the compound interest on an investment of $18,000 at 8%, interest compounded quarterly, for 15 months.

## Answer This Question

## Related Questions

- math - an investor is considering investing £5000 over five years in a scheme ...
- compounded interest - A bank offers a rate of 5.3% compounded semi-annually on ...
- Compound Interest - A bank offers a rate of 5.3% compounded semi-annually on its...
- investing - Lily invests $4,000, at 6% interest, compounded quarterly for 5 ...
- engineering economic - Ahmad is considering investing RM2000 to Ali's project at...
- finance - If we invest money for 10 years at 8% interest, compounded semi-...
- Math 20(interest rates) - Determine the amount of interest charged on a loan of...
- Compound interest - Hello My teacher skipped over this and I have no clue how to...
- investing - . Jamie Thompson is thinking about investing in some residential ...
- math - Simple interest the simple interest received from investment is directly ...

More Related Questions