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Eleven years ago, Chad invested $9,000. Six years ago, Allison invested $16,400. Today, bothChad's andAllison's investments are each worth $2,400. Assume that bothChadandAllisoncontinue to earn
Eleven years ago, Chad invested $9,000. Six years ago, Allison invested $16,400. Today, bothChad's andAllison's investments are each worth $2,400. Assume that bothChadandAllisoncontinue to earn their respective rates of return. Which one of the following statements is correct concerning these investments?
Allisonhas earned an average annual interest rate of 3.37 percent. | ||
Chadhas earned an average annual interest rate of 6.01 percent. | ||
Three years from today,Allison's investment will be worth more thanChad's. | ||
One year ago,Chad's investment was worth less thanAllison's investment. | ||
Allisonearns a higher rate of return thanChad. |
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