Child Performance of Investments Over the Course of the Competition Michelle $2000 earned 3.5% annual interest compounded monthly $1000 grew, compounded continuously at rate of 1.8% annually Kristen $2500 earned 1.2% annual interest compounded quarterly $500 increase in value at a rate of 2.25% compounded quarterly Gabriella $3000 grew, compounded continuously at rate of 3.2% annually Judy $1050 earned exponentially at a rate of 1.5% annually $1950 earned 2.8% annual interest compounded biannually (twice a year)
Child Performance of Investments Over the Course of the Competition Michelle $2000 earned 3.5% annual interest compounded monthly $1000 grew, compounded continuously at rate of 1.8% annually Kristen $2500 earned 1.2% annual interest compounded quarterly $500 increase in value at a rate of 2.25% compounded quarterly Gabriella $3000 grew, compounded continuously at rate of 3.2% annually Judy $1050 earned exponentially at a rate of 1.5% annually $1950 earned 2.8% annual interest compounded biannually (twice a year)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Mrs Galicia gave her sisters $3000 each to invest. The investment will last 8 years. The table shows what each sister did with their investment and how it changed over 8 years. Use the chart to answer the following questions please
1. What is the balance of Michelle's $3000 after 8 years?
2. What is the balance of Kristen's $3000 after 8 years?
3. What is the balance of Gabriella's $3000 after 8 years?
4. What is the balance of Judy's $3000 after 8 years?
5. Who has the most money at the end of the 8 years? If i were to choose one of the options to use for my own money, which option should I choose?
Transcribed Image Text:Child
Performance of Investments Over the Course of the Competition
Michelle
$2000 earned 3.5% annual interest compounded monthly
$1000 grew, compounded continuously at rate of 1.8% annually
Kristen
$2500 earned 1.2% annual interest compounded quarterly
$500 increase in value at a rate of 2.25% compounded quarterly
Gabriella
$3000 grew, compounded continuously at rate of 3.2% annually
Judy
$1050 earned exponentially at a rate of 1.5% annually
$1950 earned 2.8% annual interest compounded biannually (twice a year)
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