Multiplication patterns with decimals
2 answers:
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Answer:
Annuity C
Step-by-step explanation:
The longer the term, the greater the contribution that interest makes. If we simply assume there is an answer among these choices, it will be the choice with the longest term: Annuity C.
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For n payments, the multiplier of the payment at 5% per year is ...
(1.05^n -1)/(0.05)
The attached graph shows this value exceeds 2n for n > 26.5. That is, for n=30, the interest earned is more than the amount contributed.
