SOLUTION: You are due to receive 3 payments(one per year)which you can invest in an account that earns 9% interest per year.Which sequence of payments yields the greatest amount? a. $200,$3

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Question 732229: You are due to receive 3 payments(one per year)which you can invest in an account that earns 9% interest per year.Which sequence of payments yields the greatest amount?
a. $200,$300,$250
b. $250,$100,$300
c. $400,$100,$100
d. $300,$200,$250

Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!
we can eliminate
b. $250,$100,$300........31.5
c. $400,$100,$100.......54
because total amount is lower than a and d
check a:
a. $200,$300,$250......with 9% interest per year=0.09 ...first year you get 200%2A0.09=18 interest; in all $218,
second year 300%2A0.09=27 interest per year,for two years will be 300%2B2%2A27=300%2B54=354,
third year 250%2A0.09=22.5interest per year 250%2B3%2A22.5=%24250%2B67.5=317.5
for all three years you got:$218%2B354%2B317.5=highlight%28889.5%29

d. $300,$200,$250..........first year you get 300%2B27=+327, second year 200%2B2%2A18=236, third year 250%2B3%2A22.5=317.5
for all three years you got: 327%2B236%2B317.5=highlight%28880.5%29
so, your answer is a. $200,$300,$250