For this we will use formula that is letting us to input: interest rate, starting funds, how often intereset rate is implemented, period we are observing. Formula looks like this:
where M is money, S is starting funds, "i" is interest rate, cp is compounding period and y is number of years. now we express and calculated for both of them and get
M = 318,479 for Patricks investement.
M = 331,482 for Brooklyn.
Which means Brooklyn's method will pay of more.
where M is money, S is starting funds, "i" is interest rate, cp is compounding period and y is number of years. now we express and calculated for both of them and get
M = 318,479 for Patricks investement.
M = 331,482 for Brooklyn.
Which means Brooklyn's method will pay of more.