# algebra

Tasha invests \$5,000 annually at 6% and \$5,000 annually at 8%. Thomas invests \$10,000 annually at 7%. Which statement accurately compares the two investments if interest is compounded annually?

1. 👍
2. 👎
3. 👁
1. I do not see the statements

.5*(1.06)^n + .5(1.08)^n
compared to
1 * (1.07)^n

1. 👍
2. 👎
2. Each person will have exactly the same amount over time because each invested \$10,000 at an average interest rate of 7%.

Tasha’s investment will yield more over many years because the amount invested at 8% causes the overall total to increase faster.

Thomas’s investment will yield more from the start because he has more money invested at the average percentage rate.

Tasha’s investment will be greater at first because she invested some at a higher rate, but Thomas’s investment will be greater over the long run.

1. 👍
2. 👎
3. well, look after a year

.5*1.06 + .5*1.08 = 1.07

1 * 1.07 = 1.07

look after 5 years
.5(1.06)^5 + .5(1.08)^5 = 1.403776827
1.07^5 =1.402551731 less

look after 20 years
.5*1.06^20 + .5*1.08^20 = 3.9340463
1.07^20 = 3.869684462 less
Tasha wins because the 8% half makes the Tasha investment grow faster

1. 👍
2. 👎

## Similar Questions

1. ### Math

Three individuals form a partnership and agree to divide the profits equally. X invests \$4,500, Y invests \$3,500 and Z invests \$2,000. If the profits are \$1,500, how much less does X receive than if the profits were divided in

2. ### Algebra

Car financing for less 2-year term Up to \$40,000 6% compared annually with a \$500 up-front payment 1. What part of the offered deal is this interest rate? 2 year term Up to \$40,000 6% compounded annually**** \$500 up-front payment

3. ### macroeconomic

Secondhand smoke globally kills more than 600,000 people each year, accounting for 1 percent of all deaths worldwide, according to a new study. . . . Researchers estimated that annually secondhand smoke causes about 379,000 deaths

4. ### Math

A \$4,000.00 principal earns 5% interest compounded annually. After 4 years, what is the balance in the account? A. \$500,000.00 B. \$4,862.03 *** C. \$4,600.00 D. \$20,250.00

Marcus invests \$8,000, at 8% interest, compounded annually for 15 years. Calculate the compound interest for his investment.

2. ### math

Three individuals form a partnership and agree to divide the profits equally. X invests \$4,500, Y invests \$3,500 and Z invests \$2,000. If the profits are \$1,500, how much less does X receive than if the profits were divided in

3. ### Pre-Algebra

Three individuals form a partnership and agree to divide the profits equally. X invests \$9,000, Y invests \$7,000, Z invests \$4,000. If the profits are \$4,800, how much less does x receive compared to having the profits divided in

4. ### math

A market research company conducted a survey to find the level of affluence in a city. They defined the category "affluence" for males earning \$100,000 or more annually and for females earning \$80,000 or more annually. Out of 267

1. ### maths

a man holds a note of \$6,000 that has an interest rate of 13% annually the note was made on march 17 and is due november 11 he sells the note to a bank on june 14 at a discount rate of 12% annually find the proceeds on the

2. ### math

a man holds a note of \$6,000 that has an interest rate of 13% annually the note was made on march 17 and is due november 11 he sells the note to a bank on june 14 at a discount rate of 12% annually find the proceeds on the

3. ### Math

The Problem: You win the grand prize on a game show. You have the following choices: Option 1: \$1-million dollars paid as a \$25 000 annuity every year over 40 years. Option 2: The present value of option 1 if the current interest

4. ### math

Three individuals form a partnership and agree to divide the profits equally. X invests \$4,500, Y invests \$3,500 and Z invests \$2,000. If the profits are \$1,500, how much less does X receive than if the profits were divided in