Math
If P dollars borrowed or invested for for t years at the interest rate r compounded n times per year, then the future value (a) will be A=P(1+rn)nt
Two individuals, M and N invested P dollars with the following conditions and both gained the same future value at the end of the investment period:
M invested $P at the interest rate r−5100 for 6 years compounded 4 times per year
N invested $P at the interest rate r+5100 for 4 years compounded 6 times per year
Quantity A
|
Quantity B
|
r
|
25
|
A)The quantity in Column A is greater.
B)The quantity in Column B is greater.
C)The two quantities are equal.
D)The relationship cannot be determined from the information given.
Correct Answer - C - (click and drag your mouse to see the answer)
Question Discussion & Explanation
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