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
