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comparing compounded interest balences

Mathematics
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Sandra has two credit cards, P and Q. Card P has a balance of $726.19 and an interest rate of 10.19%, compounded semiannually. Card Q has a balance of $855.20 and an interest rate of 8.63%, compounded monthly. Assuming that Sandra makes no purchases and no payments with either card, after four years, which card’s balance will have increased by more, and how much greater will that increase be?
Jan 28th, 2015

this is your answer

Card P: 726.19(1+ 0.1019/2)^8 
=1080.70-726.19= 354.51

Card Q: 855.20(1+0.0863/12)^48
=1206.28-855.20= 351.08

354.51-351.08= $3.43

Jan 28th, 2015

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