Question

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?

Answer 1

For my lazy gang out there its B

Explanation:

Did the test

Answer 2

To solve this we are going to use the simple interest formula:
`A=P(a+rt)`
where

`A` is the final amount.

`P` is the initial investment.

`r` is the interest rate in decimal form.

`t` is the time in years.

Investment A. We know that the initial investment is $10,000, so
`P=10000`. We also know that the number of years is 5, so
`t=5`. To convert the interest rate to decimal form, we are going to divide the rate by 100%

`r= (3)/(100) =0.03`
Lets replace those values in 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= (2.8)/(100) =0.028`.

`A=P(a+rt)`

`A=8000(1+0.028*15)`

`A=11360`

We can conclude that investment A will be worth than investment B at the end of the investment period.