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Julie and Ron deposit money into separate savings accounts today. Julie deposits X into his account,...

Julie and Ron deposit money into separate savings accounts today. Julie deposits X into his account, while Ron deposits X/2 . Julie’s account earns simple interest at an annual rate of j > 0. Ron's account earns interest at a nominal annual rate of j, compounded quarterly. Julie and Ron earn the same amount of interest during the last quarter of the 4th year. Calculate j.

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Expert Solution

X*j/4=X/2*(1+j/4)^(4*4)-X/2*(1+j/4)^(4*4-1)
=>j/4=1/2*(1+j/4)^(4*4)-1/2*(1+j/4)^(4*4-1)
=>j=18.9176%

jeff jeffy answered 2 years ago
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