(3pt) Suppose Carla has $14,000 to invest. Which investment yields the greater return over 3 years: 7% compounded quarterly or 6.85% compounded monthly? (Clearly show your calculations of both then clearly indicate which is the better investment.)

7% compounded quarterly

Step-by-step explanation:

12 quarters in three years.

$14000(1 + 0.07/4)¹² = $17,240.15

36 months in 3 years

$14000(1 + 0.0685/12)³⁶ = $17,183.90

one fourth of 9% = 2.25%

gavin is correct in saying : the equivalent quarterly interest rate would be

2.25%.

step-by-step explanation:

let pq = qr = rs = x, and xz = y and zu = z.

if the horizontal lines are parallel, then corresponding segments are in proportion:

substitute:

therefore 3 = y = z.

xu = y + z → xu = 3 + 3 = 6