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

Question

Liula

1 month 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] · Answer 1 · 2026-03-01T11:50:52+03:00

PIT_PIT [12.4K]1 month 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] · Answer 2 · 2026-03-01T11:52:21+03:00

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.