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harkovskaia [24]
3 years ago
9

If you invested $500 at 5% simple interest for 2 years, how much interest do you earn? Show work and answer in complete sentence

s to earn full credit.
If you invest $500 at 3% compounded monthly for 2 years, how much interest you do earn? Show work and answer in complete sentences to earn full credit.




Which would you rather do?
Mathematics
1 answer:
Scorpion4ik [409]3 years ago
6 0

The first investment can be shown as T=500*1.05^2 which is $551.25

The second investment can be shown as T=500*e^(0.03*12*2) which is $1027.22

So the second investment is better

Hope that helped!

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Answer:

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Option B is correct.

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*****Just after 1 year we can see that Tasha's total amount is high than Thomas. This means at the same consistent rate, each year Tasha's amount will always be higher than Thomas.

So, option B is correct. Tasha’s investment will yield more over many years because the amount invested at 8% causes the overall total to increase faster.

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