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Yakvenalex [24]
3 years ago
14

Can you please help me?

Mathematics
1 answer:
jekas [21]3 years ago
8 0
1. is the third choice
2. is second choice
3. is fourth choice
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George wants to invest $20,000 One investment pays interest at a rate of 18 2/3% while another pays interest at a rate of 0.1872
xz_007 [3.2K]

Answer:

Investment with interest rate 0.1872 is better

Step-by-step explanation:

Given as :

George investment principal = $20,000

The Rate of interest  (R1)   = 18 \frac{2}{3} % = \frac{56}{3} %

I.e   R1 = 18.67 %

Again The The Rate of interest  (R2)  = 0.1872  = 18.72 %

Let the time period for both rate of interest = 1 years

Now from compound interest method

Amount = Principal × (1 + \frac{Rate}{100})^{Time}

Or,    A 1 = $ 20 , 000 × (1 + \frac{18.67}{100})^{1}

Or,    A 1 = $ 20 ,000 × 1.1867

∴       A 1 = $ 23,734

And   A 2 = $ 20 , 000 × (1 + \frac{18.72}{100})^{1}

Or,     A 2 = $ 20 ,000 × 1.1872

∴        A 2 = $ 23,744

Hence From the calculation of both amount it is clear that , investment with interest rate 0.1872 is better . Answer

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