# 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 be the best for his investment.

Option 1: 6% compounded interest quarterly for 5 years.
Option 2: 8% compounded interest annually for 5 years.
Option 3: 14.5% simple interest for 10 years.

asked by yolanda johnson
1. Compound interest
P is the principal (the initial amount you borrow or deposit)

r is the annual rate of interest (percentage)

n is the number of years the amount is deposited or borrowed for.

A is the amount of money accumulated after n years, including interest.

When the interest is compounded once a year:

A = P(1 + r)^n
Simple Interest

A = (r/100 * P )n

posted by Knights

## Similar Questions

1. ### 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
2. ### 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
3. ### 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
4. ### 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
5. ### 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
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
7. ### Finance

a client comes to you for an investment advice on his 500,000 winnings from the lottery. he has been offered the following options. what would be the best option 6% compounded interest quarterly for 5 years or 8% compounded
8. ### math ( Discrete Functions)

lottery offers two options for the prize. (7) Option A: \$1000 a week for life. Option B: \$600 000 in one lump sum. If you choose Option B, you have the opportunity to place the winnings into an investment that also makes regular
9. ### math

A lottery offers two options for the prize. (7) Option A: \$1000 a week for life. Option B: \$600 000 in one lump sum. If you choose Option B, you have the opportunity to place the winnings into an investment that also makes regular
10. ### Business Algebra

I need to know the formula for these questions and just how to do them. If you could help please. As a financial planner a client comes to you for investment advice. After meeting with him and understanding his needs, you offer

More Similar Questions