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Home » $30 = 2 \cdot 3 \cdot 5$. - 500apps

$30 = 2 \cdot 3 \cdot 5$. - 500apps

📅 March 14, 2026 👤 scraface

Mar 14, 2026

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📌 A company offers two investment plans. Plan A offers a fixed interest rate of 5% per annum compounded annually, while Plan B offers a fixed interest rate of 4.5% per annum compounded semi-annually. If an investor invests $1,000 in each plan, which plan yields more after 3 years, and by how much?

📌 For Plan A (compounded annually):

📌 A = P \left(1 + \frac{r}{n}\right)^{nt} = 1000 \left(1 + \frac{0.05}{1}\right)^{1 \times 3} = 1000 \times (1.05)^3

📌 A = 1000 \times 1.157625 = 1157.63

📌 For Plan B (compounded semi-annually):

📌 A = P \left(1 + \frac{r}{n}\right)^{nt} = 1000 \left(1 + \frac{0.045}{2}\right)^{2 \times 3} = 1000 \times \left(1.0225\right)^6

📌 A = 1000 \times 1.142641 = 1142.64

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