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malfutka [58]
3 years ago
10

George is comparing three investment accounts offering different rates.

Mathematics
1 answer:
Roman55 [17]3 years ago
5 0

Answer:

Account C will give George at least a 4% annual yield.

Step-by-step explanation:

This problem can be solved by using simple maths formula given below

Year rate = (1+i)^n-1

where i = compounding rate and n = interval period

Now checking annual rate for each option using above formula

Account A)

Yr = 3.8% ( n= 12 and i= 3.75/12)

Account B)

Yr = 3.9 % ( n= 4 and i= 3.85/4)

Account C)

Yr = 4 % ( n= 365 and i= 3.95/365)

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_____

<em>Additional comments</em>

It is useful to become familiar with the domains of different functions. As we saw above, the reciprocal of 0 is undefined. The square root of a negative number is undefined. The log of a non-positive number is undefined. Trig functions are defined everywhere, but their inverse functions are not. Polynomial functions are defined everywhere, but ratios of polynomials have the same restriction on denominators that we see above.

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