Ten years ago, Alicia invested $9,000 at 5 percent interest. How much more money would she have today if she had invested the money at 6 percent instead of 5 percent? Interest is compounded annually.
What will be an ideal response?
$1,457.58
FV = $9,000 X (1 + 0.05) ^10=$14,666.05
FV- $9,000 x (1 + 0.06) ^10 = $16,117.63
Difference = $16,117.63-$14,660.05 = $1,457.58
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