You just won $900 in the lottery and you decide to invest this money for 10...

You just won $900 in the lottery and you decide to invest this money for 10 years. Three accounts pay as follows:

Account A pays 14% interest per year.
Account B pays 13.4% interest per year, compounded monthly.
Account C pays 13% interest per year, compounded daily.

For each account, determine the value of your investment after 10 years.
1. Account A: $
2. Account B: $
3. Account C: $
If you are trying to earn the most money possible on your investment, which account should you invest your money in? (Select all that apply.)
- Account A
- Account B
- Account C

Solutions

Expert Solution

The given question can be solved by calculating the final amount by compound interest when the amount is compounded yearly monthly and daily.

since investing in scheme A gives the highest amount of money after 10 years, It should be preferred.

Please do upvote if you found the solution helpful. Feel free to ask any doubt regarding this question in the comment section. Thanks!

milcah answered 1 year ago

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