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24 October, 17:37

Order the situations from the account that yields the greatest amount to one that yields the least amount.

Situation A: You invest $500 in an account at a 12% interest rate, compounded monthly, for 12 years.

Situation B: You invest $500 in an account at a 10% interest rate, compounded quarterly, for 15 years.

Situation C: You invest $500 in an account at a 15% interest rate, compounded annually, for 10 years.

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  1. 24 October, 17:58
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    Order from the greatest yield to the least as follows

    1. Situation B=$2,119.8949

    2. Situation A=$2,095.3078

    3. Situation C=$2,022.7789

    Step-by-step explanation:

    Situation A

    A=P (1+r/n) ^nt

    =500 (1+0.12/12) ^12*12

    =500 (1+0.01) ^144

    =500 (1.01) ^144

    =500 (4.1906155936008)

    =$2,095.3078

    Situation B

    A=P (1+r/n) ^nt

    =500 (1+0.1/4) ^4*15

    =500 (1+0.025) ^60

    =500 (1.025) ^60

    =500 (4.3997897488150)

    =$2119.8949

    Situation C

    A=P (1+r) ^t

    =500 (1+0.15) ^10

    =500 (1.15) ^10

    =500 (4.0455577357079)

    =$2022.7789

    Order from the greatest yield to the least as follows

    1. Situation B=$2,119.8949

    2. Situation A=$2,095.3078

    3. Situation C=$2,022.7789
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