Larry and peggy are making decisions about their bank accounts. larry wants to deposit $350 as a principle amount, with an interest of 4% compounded quarterly. peggy wants to deposit $350 as the principle amount, with an interest of 6% compounded monthly. explain which method results in more money after 2 years. show all work.

Peggy's choice would be correct, with the larger interest rate compounded more often.  

The formula for compound interest is:

where p is the principal invested, r is the interest rate written as a decimal number, n is the number of times the interest is compounded per year and t is the number of years.  Using the information from Larry's choice we have:

Using the information from Peggy's choice we have:

With a continuous thought process.