SOLUTION: Abram invests $15500 compound yearly; Rhoda N$17000 compound quarterly and Rauna a single amount of N$18500 (interest compounded semi-annually).
a) How much will each of them ha
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a) How much will each of them ha
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Question 1140161: Abram invests $15500 compound yearly; Rhoda N$17000 compound quarterly and Rauna a single amount of N$18500 (interest compounded semi-annually).
a) How much will each of them have after 10 years if the interest rate is 15% p.a.?
b) Determine the interest amount for each of them.
c) Which investment is the best? Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! 15500(1+.15)^10=62706.14 interest is 47706.14
17000(1+.15/4)^40=74126.44 interest is 57126.44
18500(1+.15/2)^20=78585.25 interest is 60585.25
multiple compounding produces more interest for the same amount of principal.
The second is the best. The third has more interest because the initial principal was greater.
