11. Consider these two investment options. Option $$ A: \$ 1000 $$ invested at $$ 4.8 \% $$ per year, compounded annually. The amount, $$ A $$, after $$ n $$ years is given by the equation $$ A=1000(1.048)^{n} $$. Option $$ B: \$ 900 $$ invested at $$ 6.4 \% $$ per year, compounded annually. The amount, $$ A $$, after $$ n $$ years is given by the equation $$ A=900(1.064)^{n} $$. ( 3 marks) a) Graph both equations on the same set of axes. What types of relations are these? How do you know? b) Which investment has the greater future value? Explain your answer.

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Simpson Carroll · Accepted Answer

Option B has a higher future value than Option A because it has a higher interest rate, even though Option A starts with a higher initial investment.

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