You have $4,000 to invest for 4 years. Two investment options are presented to you: I). 5.5% interest compounded monthly, or II). 6.8% interest compounded annually.
A) Which option will give a better return?
B) How much more interest will be earned under this option?
(Round the answer to the nearest penny.)

Question

You have $4,000 to invest for 4 years. Two investment options are presented to you: I). 5.5% interest compounded monthly, or II). 6.8% interest compounded annually.
A) Which option will give a better return?
B) How much more interest will be earned under this option?
 (Round the answer to the nearest penny.)

Quizplus · Accepted Answer

The Answer of You have $4,000 to invest for 4 years. Two investment options are presented to you: I). 5.5% interest compounded monthly, or II). 6.8% interest compounded annually.
A) Which option will give a better return?
B) How much more interest will be earned under this option?
 (Round the answer to the nearest penny.)

You Have $4,000 to Invest for 4 Years