Recall that the formula for earnings on a principal investment compounded annually is: A = P * (1 + r)t where: A = amount in the fund P = principal (initial amount invested) r = Annual Percentage Rate (APR) (as a decimal) t = time in years, or term   If you invest $3,000 into each of the four options below, which option would yield the highest amount at the end of the term?   a. 4 years, 10% APR   b. 12 years, 3% APR   c. 6 years, 7% APR   d. 8 years, 5% APR

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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  1. Recall that the formula for earnings on a principal investment compounded annually is:

    A = P * (1 + r)t

    where:

    A = amount in the fund

    P = principal (initial amount invested)

    r = Annual Percentage Rate (APR) (as a decimal)

    t = time in years, or term

     

    If you invest $3,000 into each of the four options below, which option would yield the highest amount at the end of the term?

      a.

    4 years, 10% APR

      b.

    12 years, 3% APR

      c.

    6 years, 7% APR

      d.

    8 years, 5% APR

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