Nouchi has two investment options. Option A offers 9% annual interest with a $5000.00 principal and contributions of $500 at the beginning of each month. Option B offers 8% annual interest with a $10,000.00 principal and contributions of $300 at the beginning of the month.
If Nouchi plans to retire in 25 years, which option is the best choice for him?
Option B is the best choice, with a final balance $527,124.86.
Option A is the best choice, with a final balance of $362,175.91.
Option A is the best choice, with a final balance of $575,769.64.
Option B is the best choice, with a final balance of $342,936.58.