Question

Maggie is considering two investments. Investment A Investment B Principal $10,000 $8,000 Interest rate 3% 2.8% Time in years 5 15 Which investment will be worth more at the end of the investment period?

Answer 1

Answer:

investment A will be worth than investment B at the end of the investment period.

Step-by-step explanation:

Answer 2

To solve this we are going to use the simple interest formula: $A=P(a+rt)$
where
$A$ is the final amount.
$P$ is the initial investment. 
$r$ is the interest rate in decimal form.
$t$ is the time in years. 

Investment A. We know that the initial investment is $10,000, so $P=10000$. We also know that the number of years is 5, so $t=5$. To convert the interest rate to decimal form, we are going to divide the rate by 100%
$r= \frac{3}{100} =0.03$
Lets replace those values in our formula to find $A$:
$A=P(a+rt)$
$A=10000(1+0.03*5)$
$A=11500$

Investment B. $P=8000$, $t=15$, and $r= \frac{2.8}{100} =0.028$.
$A=P(a+rt)$
$A=8000(1+0.028*15)$
$A=11360$

We can conclude that investment A will be worth than investment B at the end of the investment period.