SOLUTION: Tyler has $60,000 to invest for 3 years. Estimate which investment option will earn more interest. calculate to verify your estimate. A. 5.1% simple interest, calculated monthly

Question 1086375: Tyler has $60,000 to invest for 3 years. Estimate which investment option will earn more interest. calculate to verify your estimate.
A. 5.1% simple interest, calculated monthly
B. 4.9% compound interest, calculated annually
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Tyler has $60,000 to invest for 3 years. Estimate which investment option will earn more interest. calculate to verify your estimate.
A. 5.1% simple interest, calculated monthly
I = P*r*t
I = 60,000*0.051*3 = $9180
I = P(1+(r/n)^(nt) - P = 60000(1+0.051/12)^(12*3)-60000
=60000[(1+0.051/12)^(12*3)-1]
= 60000*0.164947 = $9896.83
--------------------------
Cheers,
Stan H.
RELATED QUESTIONS
You will receive 50,000 for the next five years and you plan to invest it in the stock... (answered by greenestamps,ikleyn)

Suppose that you invest $7,000 at 6% interest, compound quarterly, for 5 years. use Table (answered by ewatrrr,Theo,MathTherapy)

Parents of a newborn baby are given a gift of Php 50,000 and will choose between two... (answered by ikleyn)

Fashima has $8000 to invest in an RESP(Registered Education Savings Plan) for seven... (answered by stanbon)

A client comes to you for investment advice on his $500,000 winnings from the lottery. He (answered by qwert12)

--------------- QUESTION FOLLOWS -------------------------- Case Study - Planning... (answered by Theo)

Case Study - Planning Ahead Precision Machining Corporation has been growing steadily... (answered by Alan3354,ikleyn)

Hello Question Lisa was offered two payment options for a three month long job. If she (answered by Theo)

You can purchase an investment that pays $75,000 at the beginning of each year for twenty (answered by ikleyn)