Question

Elliot and Faye invest $5,000 each in diffon
banks. Elliot earns annual rate of inter
12% compounded monthly and Fave
annual rate of interest 12% compounded
quarterly. If after 6 months Elliot earns a total
interest of E, and Faye earns a total interest
of F, which of the following must be true?
(A) E = F (B)E>F (C) E<F (D) E=$300 (E) F = $300​

Answer 1

Step-by-step explanation:

ANSWER B

Actual difference here is not huge. After six months:

Elliott has $5,307.60

And Faye has $5,304.50

Still, E has about $3.00 more. That is all that matters. Over time, E will be greater than F by quite a bit.