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Liula
3 months ago
9

Maggie is considering two investments. Investment A Investment B Principal $10,000 $8,000 Interest rate 3% 2.8% Time in years 5

15 Which investment will be worth more at the end of the investment period?
Mathematics
2 answers:
PIT_PIT [12.4K]3 months ago
8 0

Answer:

Investment A will have a higher value than investment B at the end of the investment duration.

Step-by-step explanation:

Zina [12.3K]3 months ago
3 0
To determine this, we will apply the simple interest formula: A=P(a+rt)
where
A signifies the total amount.
P indicates the principal amount.
r represents the interest rate in decimal.
t denotes the time period in years.

Investment A. The initial investment amount is $10,000, so P=10000. The investment period is 5 years, meaning t=5. To express the interest rate in decimal, divide it by 100%
r= \frac{3}{100} =0.03
Now, we can substitute these values into our formula to find A:
A=P(a+rt)
A=10000(1+0.03*5)
A=11500

Investment B. P=8000, t=15, and r= \frac{2.8}{100} =0.028.
A=P(a+rt)
A=8000(1+0.028*15)
A=11360

In conclusion, investment A will yield a greater value than investment B at the investment period's conclusion.
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Answer: OPTION C.

Step-by-step explanation:

It is essential to consider the following:

Dilation:

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QED!

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