Respuesta :
Answer:
3.48% compounded annually for 3 years will earn her the most money.
Step-by-step explanation:
Kim has $18000 to invest.
Now, at 3.48% interest compounded annually for 3 years, her money will become [tex]18000(1 + \frac{3.48}{100})^{3} = 19945.35[/tex] dollars.
At 4.5% interest compounded annually for 2 years, her money will become [tex]18000(1 + \frac{4.5}{100})^{2} = 19656.45[/tex] dollars.
At 3.65% interest compounded annually for 2 years, her money will become [tex]18000(1 + \frac{3.65}{100})^{2} = 19337.98[/tex] dollars.
And at 2.56% interest compounded annually for 4 years, her money will become [tex]18000(1 + \frac{2.56}{100})^{4} = 19915.19[/tex] dollars.
Therefore, the first option of 3.48% compounded annually for 3 years will earn her the most money. (Answer)
