Question 997560
Karen received an inheritance from her grandparents and wants to invest the money. She is offered the following options of accounts to invest into:
•4.5% APR, compounded semi-annually
FV = PV*(1 + r)^t
r = 4.5%/2
t = 20 half-years
FV = PV*(1 + 0.045/2)^20
FV = PV*1.56
--> 56% increase
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•4.3% APR, compounded daily
FV = PV*(1 + r)^t
r = 4.3%/365
t = 3650 days
FV = PV*(1 + 0.043/365)^3650
FV = PV*1.537
--> 53.7% increase
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If Karen decides on the the first option, by what percent will her investment have increased after 10 years?