SOLUTION: You have $10,000 that you plan to invest in a compound-interest bearing interest. Your investment agent advises you that you can invest the $10,000 at 8% compounded quarterly for

Algebra ->  Complex Numbers Imaginary Numbers Solvers and Lesson -> SOLUTION: You have $10,000 that you plan to invest in a compound-interest bearing interest. Your investment agent advises you that you can invest the $10,000 at 8% compounded quarterly for       Log On


   

Question 470738: You have $10,000 that you plan to invest in a compound-interest bearing interest. Your investment agent advises you that you can invest the $10,000 at 8% compounded quarterly for three years or you can invest it at 8 ¼ % compounded annually for three years. Which investment should you choose to receive the most interest? Show your work for calculating the interest for both options.
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
A=10000(1+0.08/4)^3*4
A=10000(1.02)^12
A=10000*1.26824
A=12,682.40
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A=10000(1.0825)^3
A=10000*1.26848
A=12,684.80