Andrew has $2300 to invest for the next 10 years. He has three options for investment.

Option A: The interest rate is 3% compounded monthly.

Option B: The interest rate is 5% compounded quarterly.

Option C: The interest rate is 7% compounded annually.

Which option yields the greatest return on Andrew's investment?

Question

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Mathematics

31 October, 10:50

Andrew has $2300 to invest for the next 10 years. He has three options for investment.

Option A: The interest rate is 3% compounded monthly.

Option B: The interest rate is 5% compounded quarterly.

Option C: The interest rate is 7% compounded annually.

Which option yields the greatest return on Andrew's investment?

+1

Answers (2)

Know the Answer?

Brock Bell · Answer 1

Option C

Step-by-step explanation:

.07 at 3500 for 10 years annually gives a 24.58 return. Option C will give Andrew the most in return.

Reece Perkins · Answer 2

Option C

Step-by-step explanation:

.03 at 3500 for 10 years monthly will give a 10.52 return.

.05 at 3500 for 10 years quarterly will give a 17.54 Return.

.07 at 3500 for 10 years annually gives a 24.58 return. Option C is the best one for him to choose.