Question

Sophia has $6,000 to invest. She is considering two investment options. Option A pays 2.2% simple interest. Option B pays 2% interest compounded annually. Use the drop-down menus below to choose which option is the best choice for Sophia for each number of years.

Answer 1

Answer:

Option A and option B

Step-by-step explanation:

Given that

Sophia wants to invest $6,000

There are two investment options

Option A pays 2.2% simple interest

and, Option B pays 2% interest compounded annually

Now we need to find out which option is the best choice

In the case when Sophia wants to invest for 10 years, so she should select

option A as the investment will have highest value.

In the case when Sophia wants to invest for 20 years, so she should select

option B as the investment will have highest value.