1- Discuss which would be a better investment if you were investing for a period of 5 years. Please provide all details. Option 1: $2000 invested at 6% compounded quarterly Option 2: $2000 invested at 2% compounded continuously2- You just had a baby and want to invest for his college tuition. You found two different accounts: In account one you have to invest $2500 at 2% compounded monthly.In account two, you have to invest $2000 at 4% compounded annually.If you predict that your child will be entering college in 17 years, which account would produce more interest over that time?

1- Discuss which would be a better investment if you were investing for a period of 5 years. Please provide all details. Option 1: $2000 invested at 6% compounded quarterly Option 2: $2000 invested at...

1- Discuss which would be a better investment if you were investing for a period of 5 years. Please provide all details.

Option 1: $2000 invested at 6% compounded quarterly

Option 2: $2000 invested at 2% compounded continuously

You just had a baby and want to invest for his college tuition. You found two different accounts:

In account one you have to invest $2500 at 2% compounded monthly.
In account two, you have to invest $2000 at 4% compounded annually.
If you predict that your child will be entering college in 17 years, which account would produce
more interest
over that time?

Answered Same DayDec 26, 2021

Answer To: 1- Discuss which would be a better investment if you were investing for a period of 5 years. Please...

David answered on Dec 26 2021

126 Votes

The formula for calculating compound interest is as follows –
The formula for annual compound interest, including principal sum, is:
A = P (1 + r/n) (nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan...

SOLUTION.PDF

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1- Discuss which would be a better investment if you were investing for a period of 5 years. Please provide all details. Option 1: $2000 invested at 6% compounded quarterly Option 2: $2000 invested at...

Answer To: 1- Discuss which would be a better investment if you were investing for a period of 5 years. Please...

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