Asked by Sub-Zero
Use x=1+r, where r is the interest rate paid each year. Write a model polynomial, C(x), to represent the final amount of each of the following 7-year term investments.
Investment 1: Deposit $4,000 at the beginning of the first year.
Investment 2: Deposit $2,000 at the beginning of the first year, $1,500 at the beginning of the third year, and $500 at the beginning of the fifth year.
Using the models that you just created, which investment option will result in more interest earned at the end of the 7-year term if the annual interest rate is 3.7 percent?
Based on the answer you got for this problem, when having the same interest rate and investment term, do you think it will be better to invest more at one time or divide the investment into smaller deposits each year? Explain your reasoning.
Investment 1: Deposit $4,000 at the beginning of the first year.
Investment 2: Deposit $2,000 at the beginning of the first year, $1,500 at the beginning of the third year, and $500 at the beginning of the fifth year.
Using the models that you just created, which investment option will result in more interest earned at the end of the 7-year term if the annual interest rate is 3.7 percent?
Based on the answer you got for this problem, when having the same interest rate and investment term, do you think it will be better to invest more at one time or divide the investment into smaller deposits each year? Explain your reasoning.
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