Consider the two savings plans below. Compare the balances in each plan after 12 years. Which person deposited more money in the plan? Which of the two investment strategies is better?
Yolanda deposits $600 per month in an account with an APR of 3%, while Zach deposits $7200 at the end of each year in an account with an APR of 3%.
clearly a rate of 3% per annum compounded monthly will yield more
than a rate of 3% per annum
You are using the same formula in each case, just like all your other questions of the same type
case 1:
amount = 600( (1 + .03/12)^144 - 1)/(.03/12) = ...
case 2:
amount = 7200( 1.03^12 - 1)/.03 = .....