(5 points) Three different investments are given in the table below (a) Find the

Question

(5 points) Three different investments are given in the table below (a) Find the balance of each investment after the two year period. Fill in correct answers in the blanks beside each investment (round all dollar figures to the nearest cent) Investment A $1100 deposited at 3.5% per year compounded monthly for two years. Investment B| $975 deposited at 6.1% per year compounded continuously for two years . Investment CS800 deposited at 14.5% per year compounded daily (365 days per year) for two years s (b) Rank these three investments from best to worst in terms of rate of return: The best rate of return is Investment The second best rate of return is Investment? The worst rate of return is Investment

Explanation / Answer

Investment A

P(1+(r/n))nt

Amount = 1100(1+(0.035/12))12*2 = $1179.64

Investment B

Pert

Amount = 975e0.061(2)=$1101.51

Investment C

800(1+(0.145/365))365*2=$1069.08

b. Investment B

   Investment C

   Investment A

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