Question

With a principal investment of $19,200, which account will have the greatest value after 5 years? simple interest: I = P • r • t interest compounded annually is A = P (1 + r)t interest compounded quarterly: A = P (1 + )4t A. 3.6% with interest compounded annually B. 3.8% in a simple interest account C. 3.4% with interest compounded annually D. 3.2% with interest compounded quarterly

Answer 1

It would be a

he could only get 3.6%/per yr because 19200-3.6%=18508.8