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Kirito is planning to invest his retirement benefit amounting to ℎ 1,500,000. He was given 3 options on where to invest his money. Help Kirito decide on which bank/ cooperative will yield him the greatest amount after 5 years. Show solutions.

A. Knights of the Blood Oath Bank – 5% annual simple interest
B. Moonlit Black Cats Bank – 3% compounded quarterly
C. Aincrad Liberation Force Cooperative – 1% compounded monthly

2 Answers

1 vote

Final answer:

To determine which bank or cooperative will yield the greatest amount after 5 years, we need to calculate the future value of Kirito's investment using the given interest rates and compounding periods for each option. Based on the calculations, the Aincrad Liberation Force Cooperative will yield the greatest amount after 5 years with a value of ₹1,602,337.72.

Step-by-step explanation:

To determine which bank or cooperative will yield the greatest amount after 5 years, we need to calculate the future value of Kirito's investment using the given interest rates and compounding periods for each option.

Option A: Knights of the Blood Oath Bank - 5% annual simple interest

The future value can be calculated using the formula: Future Value = Principal + (Principal * Rate * Time)

Future Value = ₹1,500,000 + (₹1,500,000 * 0.05 * 5) = ₹1,875,000

Option B: Moonlit Black Cats Bank - 3% compounded quarterly

The future value can be calculated using the formula: Future Value = Principal * (1 + Rate/Compounding Period)^(Compounding Period * Time)

Future Value = ₹1,500,000 * (1 + 0.03/4)^(4 * 5) = ₹1,593,848.66

Option C: Aincrad Liberation Force Cooperative - 1% compounded monthly

The future value can be calculated using the formula: Future Value = Principal * (1 + Rate/Compounding Period)^(Compounding Period * Time)

Future Value = ₹1,500,000 * (1 + 0.01/12)^(12 * 5) = ₹1,602,337.72

Based on the calculations, the Aincrad Liberation Force Cooperative will yield the greatest amount after 5 years with a value of ₹1,602,337.72.

User Raphael Bossek
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5 votes

Answer:

C

Step-by-step explanation:

This is Sword art isnt it

User Hwang
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