Please help with word problem written below?

Question

The formula for determining interest compounded monthly is A = P(1 + r over 12)12t, where A represents the amount invested after t years, P the principal invested, and r the interest rate. Jimmy invests $2,000 at an interest rate of 10% for 4 years, while Jenny invests $2,000 at an interest rate of 5% for 8 years. Determine the amount of return gained by Jimmy and Jenny. In complete sentences, summarize your results.

 

Please help!

Answer 1

A = P(1 + r/n)^nt

 

Amount for Jimmy = 2000(1 + 0.10/12)¹²⁽⁴⁾

                             = 2000(1.00833333)⁴⁸

                             = $2978.71

 

Amount for Jenny = 2000(1 + 0.05/12)¹²⁽⁸⁾

                            = 2000(1.00416666)⁹⁶

                            = $2981.17

 

Jenny's investment earned $2.46 more than Jimmy's investment.   The time of Jimmy's investment was half as long as the time of Jenny's investment , but the rate of Jenny's investment was twice as large as the rate of Jimmy's investment.