Answer:
<u>C paid out he most nominal interest:</u> 6,000
<u>B is the annuity which give a better return</u> as it generate on average 500 interest per year.
Explanation:
For the total interest we will calcualte the total contribution and subtract it from the total balance ofthe annuity
A:
150 per month x 12 month x 10 year = 18,000
21,000 - 18,000 = 3,000 interest
3,000 / 10 = 300 interest per year
B:
1,000 per year x 12 year = 12,000
16,000 - 12,000 = 4,000 interest
4,000 / 12 = 500 interest per year
C: 100 x 12 months x 30 years = 36,000
41,000 - 36,000 = 5,000
5,000 / 30 = 166,66 per year
