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Ipatiy [6.2K]
3 years ago
6

Compound Interest HelpHelp me to answer this question. 10 points!

Mathematics
1 answer:
ANEK [815]3 years ago
8 0

P=principal=$6000
t=time period=6 years

Option A
n=4 (compounded 4 times a year, or quarterly)
r=0.075
Future Amount
=P(1+r/n)^(nt)
=6000(1+0.075/4)^(4*6)
=$9370.746

Option B:
e=2.7182818284 (Napier's constant)
r=interest rate = 0.072
Final amount
= Pe^(rt)
=6000*e^(0.072*6)
=9242.011

Therefore option A is more profitable.
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