Compare the investment below to an investment of the same principal at the same rate compounded annually principal: $9000 annual interest: 8% interest periods: 6 number of years: 12

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

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

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

Considering the investment compounded annually,

From the information given,

P = 9000

r = 8% = 8/100 = 0.08

n = 1 because it was compounded once in a year.

t = 12 years

Therefore,

A = 9000 (1 + 0.08/1) ^1 * 12

A = 9000 (1.08) ^12

A = $22664

For the second investment,

n = 6

Therefore,

A = 9000 (1 + 0.08/6) ^6 * 12

A = 9000 (1 + 0.0133) ^72

A = 9000 (1.0133) ^72

A = $23301

The second investment gave higher returns.