Math Problem Statement
Paxton has two investments; investment A required a $9,430 buy-in 3 years ago and is expected to payoff $21,777 13 years from today. Investment B had a $468 buy-in required 4 years ago and is expected to payoff $7,182 12 years from today. What is the return of the higher-risk investment? Assume interest is compounded quarterly.
Answer Format: INCLUDE ONLY NUMBERS AND DECIMALS IN YOUR ANSWER. Do not include "$" "," or any other formatting. Carry interim computations to at least 4 decimals. Enter percentage answers as a positive percentage % rounded to 2 decimal places. For example 0.123456 should be enter as: 12.35 (##.##)
Solution
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Math Problem Analysis
Mathematical Concepts
Compound Interest
Exponential Functions
Formulas
Compound interest formula: A = P(1 + r/n)^(nt)
Theorems
Compound Interest Theorem
Suitable Grade Level
Grades 10-12
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