# PreCalc

posted by .

Which investment option will pay the most interest?
A. 12.6% compounded annually
B. 12.4% compounded semiannually
C. 12.2% compounded quarterly
D. 12.0% compounded continuously
E. These investments all pay the same amount of interest.

• PreCalc -

a) 1.126^1 =
b) (1.062)^2 =
c) (1.0305)^4 =
d) (e)^.12 =

• PreCalc -

Where did you get the values from?

• PreCalc -

Are you not studying compound interest?

e.g.
c) rate is 12.2 compounded quarterly,
so in (1+i)^n
i = .122/4 = .0305
n = 4

so (1+.0305)^4 = 1.0305)^4

## Similar Questions

1. ### Algebra

Greta invests \$10,000 in an investment that pays 3% interest, compounded annually, for the first three years, then 9% interest, compounded annually, for the last three years. Rui invests \$10,000 in an investment that pays r% for all …
2. ### Finance

When Samuel Pepys, the British diarist, lent his friend Lady Sandwich £100 in 1668, he charged her 6 percent interest. If the loan was due at the end of 1 year, how much would Lady Sandwich have had to pay if interest was (a) compounded …
3. ### algebra

Find the accumulated value of an investment of \$10,000 for 3 years at an interest rate of 6% if the money is a)compounded seiannually,b)compounded quarterly, c) compounded monthly, d) compounded continually
4. ### Math

Serena wants to borrow \$15 000 and pay it back in 10 years. Interest rates are high, so the bank makes her two offers: • Option 1: Borrow the money at 10%/a compounded quarterly for the full term. • Option 2: Borrow the money at …
5. ### math/ compounded

Scenario: A client comes to you for investment advice on his \$500,000 winnings from the lottery. He has been offered the following options by three different financial institutions and requests assistance to help understand which option …
6. ### math

A client comes to you for investment advice on his \$500,000 winnings from the lottery. He has been offered the following options by three different financial institutions and requests assistance to help understand which option would …
7. ### math

A client comes to you for investment advice on his \$500,000 winnings from the lottery. He has been offered the following options by three different financial institutions and requests assistance to help understand which option would …
8. ### math

find the accumulated value of an investment of \$10000 for 5 years at an interest rate of 5.5% if the money is a. compounded semiannually; b. compounded monthly; c. compounded continuously.
9. ### Investment interest

Scenario: A client comes to you for investment advice on his \$500,000 winnings from the lottery. He has been offered the following options by three different financial institutions and requests assistance to help understand which option …
10. ### Algebra

If \$32,500 is invested at 69% for 3 years find the future value if the interest is compounded the following ways. annually, semiannually, quarterly, monthly, daily, every minute (N-525,600) continuously, simple (not compounded. Thank …

More Similar Questions