Question
Morris has $1,000 to invest. He is considering two investment options.
Option A pays 0.5% simple interest.
Option B pays 0.75% interest compounded annually.
What is the value of each investment option at 5 years?
Option A pays 0.5% simple interest.
Option B pays 0.75% interest compounded annually.
What is the value of each investment option at 5 years?
Answers
oobleck
1000(1 + 0.005*5) = ____
1000(1 + 0.0075)^5 = ____
1000(1 + 0.0075)^5 = ____