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Mathematics, 18.10.2019 09:00 etwerner23

Tasha invests $5,000 annually at 6% and an additional $5,000 annually at 8%. thomas invests $10,000 annually at 7%. which statement accurately compares the two investments if interest is compounded annually?

compound interest formula: mc020-1.jpg
t = years since initial deposit
n = number of times compunded per year
r = annual interest rate (as a decimal)
p = initial (principal) investment
v(t) = value of investment after t years
each person will have exactly the same amount over time because each invested $10,000 at an average interest rate of 7%.
tasha’s investment will yield more over many years because the amount invested at 8% causes the overall total to increase faster.
thomas’s investment will yield more from the start because he has more money invested at the average percentage rate.
tasha’s investment will be greater at first because she invested some at a higher rate, but thomas’s investment will be greater over the long run.

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