Ask Question
2 November, 10:18

Anastasia was trying to decide which investment plan would be best over 10 years. Bank A was offering 8.5% simple interest on her money using the formula I=Prt Bank B was offering 8% compounded annually using the formula A=P (1+r) ^t. Which bank is a better investment if she has $2,000 to invest for 10 years?

A. Bank A is the better investment. In 10 years, her $2,000 will grow to $4,317.85, and with bank B, her $2,000 will grow to $3,700.

B. Bank B is the better investment. In 10 years, her $2,000 will grow to $4,317.85, and with bank A, her $2,000 will grow to $3,600.

C. Bank A is the better investment. In 10 years, her $2,000 will grow to $4,521.97, and with bank A, her $2,000 will grow to $3,700.

D. Bank B is the better investment. In 10 years, her $2,000 will grow to $4,317.85, and with bank A, her $2,000 will grow to $3,700.

+4
Answers (2)
  1. 2 November, 11:02
    0
    B sounds about right. I'm not sure.
  2. 2 November, 12:10
    0
    A

    2,000 * (1+0.085*10)

    =3,700

    B

    2,000 * (1+0.08) ^ (10)

    =4,317.85

    Bank B is the better investment. In 10 years, her $2,000 will grow to $4,317.85, and with bank A, her $2,000 will grow to $3,700
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Anastasia was trying to decide which investment plan would be best over 10 years. Bank A was offering 8.5% simple interest on her money ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers