4 years ago , Paul invested $1500. Three years ago, Trek invested $1600. Today, these two...

4 years ago , Paul invested $1500. Three years ago, Trek invested $1600. Today, these two investments are each worth $1800. Assume each account continues to earn its respective rate of return. (1) What is annual interest rate that Saul earned? (2) What is annual interest rate that Trek earned？ (3) Was Trek’s investment worth less than Saul one year ago?

Expert Solution

1)

Annual interest earned by paul is 6.27%

2)

Annual interest earned by Trek is 4.00%

3)

Value of Paul investment one year ago is $1,694.00

Value of Trek investment one year ago is $1,730.56

No, Trek's investment is worthy by $36.56($1,730.56-$1,694) than Paul one year ago.

jeff jeffy answered 2 years ago

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