Question

Kim has $18,000 to invest. Choose the option that will earn her the most money.

A. 3.48% compounded annually for 3 years.

B. 4.5% compounded annually for 2 years.

C. 3.65% compounded annually for 2 years.

D. 2.56% compounded annually for 4 years

Answer 1

a

Explanation:

usatestprep

Answer 2

3.48% compounded annually for 3 years will earn her the most money.

Explanation:

Kim has $18000 to invest.

Now, at 3.48% interest compounded annually for 3 years, her money will become
`18000(1 + (3.48)/(100))^(3) = 19945.35` dollars.

At 4.5% interest compounded annually for 2 years, her money will become
`18000(1 + (4.5)/(100))^(2) = 19656.45` dollars.

At 3.65% interest compounded annually for 2 years, her money will become
`18000(1 + (3.65)/(100))^(2) = 19337.98` dollars.

And at 2.56% interest compounded annually for 4 years, her money will become
`18000(1 + (2.56)/(100))^(4) = 19915.19` dollars.

Therefore, the first option of 3.48% compounded annually for 3 years will earn her the most money. (Answer)