math check my answer thanks

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who had the higher rate of interest someone who earned 400$ over 2 years on 4000$ investment or someone who earned 960$ interest over 4 years on her 6000$ investment?

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 -

    I 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 -

    thank 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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