 Mathematics
16 July, 15:35

# Kim has \$18,000 to invest. Choose the option that will earn her the most money. Question 1 options: 4.5% compounded annually for 2 years. 2.56% compounded annually for 4 years 3.65% compounded annually for 2 years. 3.48% compounded annually for 3 years.

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1. 16 July, 16:21
0
2.56% compounded annually for 4 years will earn her the most money.

Step-by-step explanation:

Amount at Compound Interest, A=P (1+r) ⁿ

The amount for each investment plan is calculated and comparison is done.

4.5% compounded annually for 2 years.

A=18000 (1+0.45) ²=18000 (1.45) ²=\$37845

2.56% compounded annually for 4 years

A=18000 (1+0.256) ⁴=18000 (1.256) ⁴=\$44795.16

3.65% compounded annually for 2 years.

A=18000 (1+0.365) ²=18000 (1.365) ²=\$33538.05

3.48% compounded annually for 3 years.

A=18000 (1+0.348) ³=18000 (1.348) ³=\$44090.21
2. 16 July, 16:32
0
Hey, the answer is 3.48% for 3 years

Step-by-step explanation:Use the formula.

A=p (1+r) ^t Plug the numbers in

P=18,000

R=3.48% but you need to convert it to a decimal which equals to 0.0348

T=3 years