Amy deposited $1000 into an account that earns 8% annual interest compounded every 6 months. Bod deposited $1000 into an account that earns 8% annual interest compounded quarterly. If neither Amy nor Bob makes any additional deposits or withdrawals in 6 months, how much more money will Bob have in his account than Amy?
A = P(1+r/n)^nt
The Attempt at a Solution
P=1000, t=1( annual), n=2 (compounded 6 months), r=8%=0.08
A= 1000(1+0.08/2)^2= 1000(1.04)^2=1.0816= 1081.6
Kindly tell why is the solution wrong?