Patrick and brooklyn are making decisions about their bank accounts. patrick wants to deposit $300 as a principle amount, with an interest of 3% compounded quarterly. brooklyn wants to deposit $300 as the principle amount, with an interest of 5% compounded monthly. explain which method results in more money after 2 years.

The formula for compound interest is

where
the total amount of money in the account after a certain amount of time
the principal amount
the interest rate as a decimal
the number of times a year interest is compounded
the number of years passed

For Patrick, we have


For Brooklyn, we have


So Brooklyn's deposit results in more money after the 2 years.

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