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27 October, 18:04

Jess has $7,500 to invest. She is considering two investment options. Option A pays 3% simple interest. Option B pays 2.75% interest compounded annually. What is the value of each investment option at 15 years?

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  1. 27 October, 18:11
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    Answer: option a: $3,375 option b: $3,093.75

    Step-by-step explanation:

    amount x interest = total total x years = total

    7,500 x 3% = 225 225 x 15 = 3,375

    7,500 x 2.75% = 206.25 206.25 x 15 = 3,093.75
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