Question

You are considering investing $6,789 at an interest rate of 7.345% compounded annually for 15 years or investing $6,789 at an interest rate of 8.123% for 15 years. Which is a better investment option?

Answer 1

$6,789 at an interest rate of 8.123% for 15 years

Step-by-step explanation:

As in the question, it is mentioned that there are two investment options who are compounded annually and the invested amount is also the same but the rate of the interest is different. In the first investment option, the rate of interest is 7.345% and in the second option, the rate of interest is $8.123%

The higher rate of interest, the better investment option it was as it gives the highest return as compare to the first investment option