Question

George says that an account that an account that earns 4% interest compounded annally and an account that earns 2% interest compounded semi-annually will be worth the same if the principals are the same. Analyze whether George's satement is accurate and explain which (if any) option is better. Explain how you got your answer. Use numbers and calcuations to provide evidence for your response. Answer in complete sentences.

Answer 1

They begging to thay 4% they take out 2% and also begging in on off they getting back to where begging

Answer 2

Answer:

George is correct

Step-by-step explanation:

Semi-annually is every 6 months, and since there will be 4% interest compounded annually and 2% compounded semi-annually it will indeed be the same, I arrived at this answer by concluding that semi-annually is every 6 months and annually is every 12 months. The calculations I used to prove this are 6 + 6 = 12 and 2 + 2 = 4.