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
Equations and Inequations
Equations and inequalities describe the relationship between two mathematical expressions.
Linear Functions
A linear function can just be a constant, or it can be the constant multiplied with the variable like x or y. If the variables are of the form, x2, x1/2 or y2 it is not linear. The exponent over the variables should always be 1.
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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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