Answer:
C) $10,000 invested at 6.7% compounded quarterly over 7 years yields the greater return.
Step-by-step explanation:
-We determine the effective interest rate in both scenarios and use it to calculate the investment's value after 7 years.
#Given n=7yrs, P=$10,000 and i=6.6% compounded monthly:
#Given n=7rs, P=10000, i=6.7%
Hence, the investment has the largest value($15,921.75) when the interest rate is compounded quarterly.
In order to find this out, let's convert both of them into percents. Since 17.5 is already a percent, we only have to convert 1/6 into a percent. To convert 1/6 into a percent, you have to divide the numerator by the denominator. If you do that, you will get 0.1666..... as a repeating decimal. Now, multiply the decimal by 100 or just move the decimal 2 spaces to the right to get the percent. If you do that, you will get 16.6%. Since it is a repeating decimal, you can round it to 16.7%. So, 17.5% is larger than 1/6.
Hope it helps :)
A I think Sorry if it’s wrong
Step-by-step explanation:
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