Question

You have $4,500 to invest. Which plan would generate the most interest after three years?

OA. 5.0% compounded semi-annually
OB. 4.9% compounded quarterly
OC. 4.8% compounded monthly
OD 5.1% compounded yearly

Answer 1

D

Explanation:

Answer 2

5.1% compounded yearly

Explanation:

f(x) = 4500(1 + .05/2)^2(3) = 5218.62

f(x) = 4500(1+ .049/4)^4(3) = 5207.94

f(x) = 4500(1+ .048/12)^(12)(3) = 5195.49

f(x) = 4500(1 + .051/1)^1(3)= 5224.21