Option 1: You invest $25/ month at a rate of 3.25% APR compounded monthly for 30 years.
Option 2: You invest $75/ quarter at a rate of 4.00% APR compounded monthly for 30 years.
Option 3: You invest $1,000 at a rate of 6.25% APR compounded monthly for 30 years.
Complete the table below and answer the questions below it.
You may use this calculator to help you. (Hint: The “Present Value” for options 1 and 2 is 0 while for option 3 it is $1,000.00. Also, the top radio button in the Contributions box should be selected so that contributions are made at the beginning of the period.)Which option was the least amount invested and what was the investment plan?
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Option 1: You invest $25/ month at a rate of 3.25% APR compounded monthly for 30 years.
Option 2: Y...
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