Answer:
Step-by-step explanation:
If that is a square, then all sides are the same. Therefore, it's a by
shape. We'll use Pythagorean Theorem to find the diagonal.
Since it's not a fraction, there is no denominator to rationalize. Let me know if you have any other questions!
Answer:
Part A: The value of the simple interest investment at the end of three years is $12,220
Part B: The value of the compounded quarterly interest investment at the end of three years is $12,134.08
Part C: The simple interest investment is better over the first three years
Part D: I advise George to invest his money in the compounded interest investment if he will keep the money for a long time
Step-by-step explanation:
Part A:
A = P + P r t, where
∵ George deposits $10,000
∴ P = 10,000
∵ First option offers 7.4% per year simple interest
∴ r = 7.4% = 7.4 ÷ 100 = 0.074
∵ He may not withdraw any of the money for three years after
the initial deposit
∴ t = 3
- Substitute all of these values in the formula above
∴ A = 10,000 + 10,000(0.074)(3)
∴ A = 10,000 + 2,220
∴ A = 12,220
The value of the simple interest investment at the end of three years is $12,220
Part B:
, where
∵ George deposits $10,000
∴ P = 10,000
∵ The second option offers a 6.5% interest rate compounded quarterly
∴ r = 6.5% = 6.5 ÷ 100 = 0.065
∴ n = 4 ⇒ quarterly
∵ He may not withdraw any of the money for three years after
the initial deposit
∴ t = 3
- Substitute all of these values in the formula above
∴
∴
∴ A = 12,134.08
The value of the compounded quarterly interest investment at the end of three years is $12,134.08
Part C:
∵ 12,220 > 12,134.08
∴ The simplest interest investment is better than the compounded
interest investment at the end of three years
The simple interest investment is better over the first three years
Part D:
I advise George to invest his money in the compounded interest investment if he will keep the money for a long time
Look to the attached graph below
