Adita has two options for how to invest $1,000.

Plan A: Put the $1,000 in an account that pays $100 per year.
Plan B: Put the $1,000 in an account that pays 5 percent interest per year.

Which statement is true?
A.Plan A will be worth more than plan B after two years.
B.Plan A will be worth the same amount as plan B after one year.
C.Plan B will be worth more than plan A after three years.
D.Plan B will be worth more than plan A after four years.

Hi there
The equation of plan A
Y=1000+100x
Where x is the number of years
The equation of plan B
Y=1000 (1+0.05)^x
Where x is the number of

The correct Option was A because
Plan A be worth after 2 years
Y=1000+100×2
Y=1200
Plan B be worth after 2 years
Y=1,000×(1+0.05)^(2)
Y=1,102.5

1200 is more than 1102.5
So it's A

Hope it helps

Answer Link

mapooja789 mapooja789 · Answer 2 · 2022-07-05T13:18:41+02:00

The equation of plan A Y=1000+100x where x is the number of years

The equation of plan B Y=1000 (1+0.05)^x where x is the number of

Plan A be worth after 2 years

Y=1000+100×2 = 1200

Plan B be worth after 2 years

Y=1,000×(1+0.05)^(2) = 1,102.5

A . Plan A will be worth more than plan B after two years.

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An investment is an asset or item that is purchased for the purpose of generating income or capital appreciation. Valuation refers to an increase in the value of an asset over time. When a person buys a good as an investment, the intention is not to consume the good but to use it in the future to create wealth.

What does an investment banker do?

Investment banking is one of the most respected professions in the financial industry. This includes working with organizations to facilitate capital funding through investments, which is achieved through activities such as underwriting the issuance of stocks and bonds.

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