Welcome to Westonci.ca, your go-to destination for finding answers to all your questions. Join our expert community today! Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
Answer:
A) $2,344.53
B) $2,340.36
C) Based on my answer in A and B, the Option i would choose is Option A. This is because the amount i would receive after 2 years in Option A is higher than that of Option B
Step-by-step explanation:
We solve for A and B using Compound Interest formula
A). You plan to invest $1978 in an account with two different options. Option 1 earns 8.5% annually, with interest to be compounded continuously. How much money would you have in the account after 2 years?
First, convert R as a percent to r as a decimal
r = R/100
r = 8.5/100
r = 0.085 rate per year,
Then solve the equation for A
The formula is given as
A = Pe^rt
A = 1,978.00(2.71828)(0.085)(2)
A = $2,344.53
B). You plan to invest $1978 in an account with two different options. Option 2 earns 8.5% annually, with interest to be compounded quarterly. How much money would you have in the account after 2 years?
First, convert R as a percent to r as a decimal
r = R/100
r = 8.5/100
r = 0.085 rate per year,
Then solve the equation for A
The formula is given as
A = P(1 + r/n)^nt
P = Principal = $1978
r = 0.085
n = compounded quarterly = 4
A = 1,978.00(1 + 0.085/4)(4)(2)
A = 1,978.00(1 + 0.02125)(8)
A = $2,340.36
C). You plan to invest $1978 in an account with two different options. Based on your two previous answers, which option would you choose and why?
Based on my answer in A and B, the Option i would choose is Option A. This is because the amount i would receive after 2 years in Option A is higher than that of Option B
Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
