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Question 1(Multiple Choice Worth 4 points)


(02.04 MC)


Abbie is in high school and saves money from her afterschool job to buy a car after she graduates from college. She wants a new car but knows it will cost more than $20,000. By her freshman year, she has saved $12,000. Which of the following would most help her have the most money by graduation?

A checking account

A compound interest account

A simple interest account

A high risk investment

Question 1(Multiple Choice Worth 4 points) (02.04 MC) Abbie is in high school and saves money from her afterschool job to buy a car after she graduates from col class=

Verified Answer :

collinlynn14

second one :D hope this helpful!

amniotecardamom

The second alternative is correct (B).

There are several ways to make money pay, so everything depends on the person's willingness to risk. Abbie can make your money pay off a lot on a high risk investment, but it can also lose everything.

By analyzing the figure, the alternative that would help her make more money would be a compound interest account. This can be seen in the long run in the income frame. After 10 years, it would have approximately twenty thousand dollars, while the other option would yield only eighteen thousand dollars.