Yael has $3,000 to invest. She wants to split the money equally between an account that
pays four percent interest with a five-year investment term and an account with a two
percent interest rate with an eight-year investment term.
Use the time value of money formula [(1+r) i.e. for 3 %=.03 interest for 2 years = 1.03²]
to figure out how much money each account would be worth when she's able to
withdraw the money. Which account is worth more?

Q&A Education