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Robert and rosie both invested $7,500 four years ago. they both earned a 15% return, however robert earned a simple return of 15% and rosie earned a compounded return of 15%. how did this difference in compounding affect their investments' value today? robert will have $1,117.55 more than rosie rosie will have $1,117.55 more than robert robert will have $2,250.00 more than rosie rosie will have $2,250.00 more than robert their investments will be worth the same

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xander1234
The difference between simple and compound interest is significant because the interest is higher when using compounding. Robert's investment amounted to $12,000 after 4 years while Rosie's investment after 4 years totaled to $13,117.55 with a difference of $1,117.55.

Thus, Rosie will have $1,117.55 more than Robert.
Parrain

Based on the amount invested, the difference in compounding would lead to a situation where Rosie will have $1,117.55 more than Robert.

How much would Robert have?

This can be found as:

= 7,500 x ( 1 + 15% x 4 years)

= $12,000

How much did Rosie have?

This can be found as:

= 7,500 x ( 1  + 15%)⁴

= $13,117.55

What is the difference?

= 13,117.55 - 12,000

= $1,117.55

Find out more on compound interest at https://brainly.com/question/24274034.

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