Answer
Four years in the future 100 equals $(1.04)^4 x 100= 117$. Therefore the total interest would be the $17. $(1.06)^4 x$100=$126.50$. The total interest 26.50. The difference therefore is 9.50
Work Step by Step
This a simple future expected value question. Calculate both the future expected values, subtract the principal and then compare both interest rates.
