Which is the best investment for three consecutive years?
a. A growth of 5% followed by a growth of 10% followed by a growth of 15%
b. A growth of 15% followed by a growth of 10% followed by a growth of 5%
c. Three years of growth at 10% per year.
http://www.jiskha.com/display.cgi?id=1258772486
Do you have to add them all together or multpily?
did you not look at the solution I gave in the link ?
yes, I saw that, but how do I get the answer on each line to compare them. Do I multiply each line, or add them.
first one:
-you multiply them, brackets mean multiplication
1.05(1.1)(1.15)
= 1.05 x 1.1 x 1.15 = 1.32825
so that is an increase of 32.825%
1.32825 is what I got for the b and 1.331 is what I got for c so I guess the answer would be c
correct
c) has the largest number, thus the largest growth