Answer:
Walter earns $1,517 more than Stevens in one year.
Step-by-step explanation:
Giving the following information:
Two brothers Steven and Walter each inherit $41,000
Steven:
Annual return= 2.7%
Walter:
Annual return= 6.4%
To determine the future value for the brothers, we need to use the following formula:
FV= PV*(1+i)^n
Steven:
FV= 41,000*1.027= $42,107
Walter:
FV= 41,000*1.064= $43,624
Difference= 43,624 - 42,107= $1,517
Walter earns $1,517 more than Stevens in one year.
