You have a choice to invest in one of three different

Last updated: 7/16/2022

You have a choice to invest in one of three different college funds to save up for college. You need to save at least $14,000 for your first year. In which of the three accounts do you choose to invest your money given that you have $10,000 to invest and you would like to accrue as much interest as possible? Account 1: An annual interest rate of 3.5% compounded quarterly for 10 years. Account 2: An annual interest rate of 3.6% compounded continuously for 10 years. Account 3: An annual interest rate of 3.2% compounded annually for 10 years. You choose account #1 You choose account #2 You choose account # 3 You choose to look for a different savings account because none of the options help you save $14,000.