Answer:
Answer:
Option B is correct.
Step-by-step explanation:
We will compare the interest earned by both.
Tasha: p = $5000
r = 6% or 0.06
n = 1
So, Amount after a year will be = = $5300
And amount the next year with p = 5300: 5300*1.06= $5618
Additional $5000 at 8%
Here the amount will be = =5400
Next year amount with p = 5400 : 5400*1.08 = $ 5832
Amount in total Tasha will have in 2 years = 5618+5832 = 11450
Thomas:
p = 10000
r = 7% or 0.07
n = 1
After a year the amount will be = =$10700
Amount Next year with p = 10700 : 10700*1.07 = $11449
*****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.
