I have no idea how to do this please help.

Question

Order the situations from the account that yields the greatest amount to one that yields the least amount.

​Situation A: You invest $500 in an account at a 12% interest rate, compounded monthly, for 12 years.

​Situation B: You invest $500 in an account at a 10% interest rate, compounded quarterly, for 15 years.

​Situation C: You invest $500 in an account at a 15% interest rate, compounded annually, for 10 years.

Answer 1

This is a compound interest problem.

The formula for compound interest is:

A = P[1+(r/n)]^(nt)

A = Final amount

P = Starting amount

r = rate as a decimal (so 31% growth -> 0.31)

n = compounding frequency (e.g., if you're working in years and you compound monthly, then n = 12 because 12 months in a year).

t = time elapsed (in your case, years).

So now you can plug and chug!

I really ope this helps!

Best,

Sam

Answer 2

A : A = 500(1 + 0.12/12)^(12)(12)

B: A = 500(1 + 0.10/4)^(4)(15)

C: A = 500(1 + 0.15)¹⁰

Can you do the calculations and answer?