The answers are for 10 years option A, and the investment will have greater value and for 20 years option B and the investment will have greater value.
What is compound interest?
It is defined as the interest on the principal value or deposit and the interest which is gained on the principal value in the previous year.
We can calculate the compound interest using the below formula:
[tex]\rm A = P(1+\dfrac{r}{n})^{nt}[/tex]
Where A = Final amount
P = Principal amount
r = annual rate of interest
n = how many times interest is compounded per year
t = How long the money is deposited or borrowed (in years)
As we can see from the list, the investment will have a greater value for option A after 10 years which is $7320
And for option B the investment will have a value of $8916 after 20 years
Thus, the answers are for 10 years option A, and the investment will have greater value and for 20 years option B and the investment will have greater value.
Learn more about the compound interest here:
brainly.com/question/26457073
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