Question

Please answer quickly I am unsure what to do​

Answer 1

Answer:

Investment B is £97 more than investment A

Step-by-step explanation:

For investment A

£160is saved for 2 years every month

Total amount at the end of the two years= 2*160*12= £3840

The the percentage interest added is

=2.5/100*3840

= £96

Total amount= 3840+96

Total amount=£ 3936

For investment B

£3800 is compounded every year for two years at 3%

Total amount= 3800(1+0.03/2)^(2*2)

Total amount= 3800(1+0.015)^4

Total amount= 3800(1.015)^4

Total amount= 3800(1.061363551)

Total amount= 4033.18

Total amount= £4033

The difference between the two investment= 4033-3936

= £97