Question

Answer questions but the top being the following instead of image

Investment a: $3,000 invested for six years compounded, semi annually at 6%

Investment b: $4000 invested for four years compounded quarterly at 2.7%.

Answer 1

B will get more $

Explanation:

3000 annual rate 6% so half a year is 3%, compounding semiannually for 6 years = 12 times

so 3000*(1+3%)^12 =4277.28

$4000 invested for four years compounded quarterly at 2.7%. so every quater is 2.7%/4 =0.675%, compounding quarterly for 4 years = 16 times

so 4000*(1+0.675%)^16=4454.57