Question

Nouchi has two investment options. Option A offers 9% annual interest with a $5000.00 principal and contributions

of $500 at the beginning of each month. Option B offers 8% annual interest with a $10,000.00 principal and
contributions of $300 at the beginning of the month.
If Nouchi plans to retire in 25 years, which option is the best choice for him?

Answer 1

Option B)

Explanation:

ok so is 9% so 5000+450x-500

5000+(450)(25)−500

=15750

and and 8% 800 so 10000+800x-300

10000+(800)(25)−300

=29700

Answer 2

Option A with $575,769.64