Respuesta :

Answer:

Investment B has the greatest total amount

Step-by-step explanation:

The computation is shown below:

Here we use the following formula for determining the results of both type of investments

Future value = Present value × (1 + rate of interest)^time period

Now for investment A, the future value is

= $3,000 × (1 + 0.07 ÷ 2)^4 × 2

= $3,000 × 1.035^8

= $3,950.43

And, for investment B, the future value is

= $5,000 × (1 + 3.2 ÷ 2)^4 × 3

= $35000 × 1.016^12

= $5,501.69

As we can see that the investment B has the greatest total amount so the same is to be considered

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