Michelle's investment balance after 8 years is $10,790.48.
Kristen's investment balance after 8 years is $3,770.55.
Gabriella's investment balance after 8 years is $24,780.42.
Judy's investment balance after 8 years is $3618.62.
The person with the highest amount of money at the end of the 8 years is Gabriella. If I were to choose one of the investment options, I would choose Gabriella's option.
What are the formulas that can be used to determine the balance of the sisters?
The formula that can be used to determine the future value of the investment with compounding is:
FV = P (1 + r)^nm
Where:
- FV = Future value
- P = Present value
- R = interest rate / number of compounding
- m = number of compounding
- N = number of years
Future value with continuous compounding = : A x e^r x N
Where:
- A= amount
- e = 2.7182818
- N = number of years
- r = interest rate
What is Michelle's balance after 8 years?
Future value with monthly compounding = $2000 x ( 1 + 0.035/12)^(12 x 8) = $2645.18
Future value with continuous compounding: 1000 x e^0.018 x 8 = $8,145.30
Total = $8,145.30 + $2645.18 = $10,790.48
What is Kristen's balance after 8 years?
Future value with quarterly compounding = 2500 x (1 + 0.012 / 4)^(4 x 8) = $2,751.50
Future value with quarterly compounding = 500 (1 .0225)^(8x4) = $1019.05
Total = $3,770.55
What is Gabriella's balance after 8 years?
$3000 x e^0.032 x 8 = $24,780.42
What is Judy's balance after 8 years?
Future value with exponential increase = 1050 x (1.015)^8 = $1,182.82
Future value with biannual compounding = 1950 x (1 + 0.028/2)^(8 x 2) = $2435.80
Total = $3618.62
To learn more about future value, please check: brainly.com/question/18760477
