Question

PLEASE HELP; Questions written in in the responses below.

Answer 1

Suppose that you were saving money over 5 years to use in a purchase later.  You have $1000 to put in the savings.  After surveying several banks for savings plans, you found these options.  A stands for the amount you will have in the bank after x years. Option A:  Your money would receive simple interest at the end of 5 years.                The formula is A = 1000 + 1000(0.05) x. Option B:  Your money will be compounded continuously.              The formula is A = (1000)(2.71828)(0.05 x).
Option C:  You will invest in a CD (Certificate of Deposit) compounded yearly. The formula is A = (1000)(1.05) x. Option D:  Buy a US Savings Bond.  Buy at $1000 now. When cashed in 5 years later, the amount will be $1267. x=5 1. What is the order of Options A, B, C, and D, listing the option which gives the greatest amount at the end of 5 years to the least. 2. State the amount that you calculated for each option. Round to the nearest dollar.  Do not round until the end of the problem.

Answer 2

Option A:
1000+1000(0.05)= 1050$

Option B:
(1000)(2.71828)(0.05(5))=679.57 (hmm...I'm assuming that you add this nmber to 1000, so 1679.57$)

Option C:
(1000)(1.05)(5)=5250$

Option D:
1267$


The best option, by FAR is Option C, the CD

Answer 3

Whoa, thank you! :)

Answer 4

No problem :)