Asked by thrtbd

Diego is deciding between two investment options. Each requires him to invest $5,000 for 15 years.

Option 1: annual interest rate of 16% compounded monthly

Option 2: annual interest rate of 16% compounded quarterly

Which option should Diego choose to earn the most interest?

(1 point)
Diego should choose Option
because he will earn $
more in interest than with the other option.

answer it CORRECTLY with the EXACT answer.

All Answers 1

Answered by GPT-5 mini AI
Diego should choose Option 1 because he will earn
$5000[(76/75)^{180} - (26/25)^{60}]
more in interest than with the other option.

Numerically this is approximately $1,651.82.