Question

for the investment amount and time period, determine which plans are available. then determine which plan pays the most interest. explain.
an investment of $50,000 for 2 years.
investment options!
plan 1:
3.5% per year,
minimum $40,000
plan 2:
3.8% per year,
minimum 3 years
plan 3:
3.1% per year,
no conditions.
drag the phrases into the boxes to correctly complete the paragraph.
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Explanation:

Step1: Check Plan 1 Eligibility

Investment amount is $50,000. Plan 1 requires minimum $40,000, so eligible. Time is 2 years. Plan 1 rate: 3.5% per year. Interest for Plan 1: $I_1 = 50000\times0.035\times2 = 3500$.

Step2: Check Plan 2 Eligibility

Plan 2 requires minimum 3 years. Investment time is 2 years, so not eligible.

Step3: Check Plan 3 Eligibility

Plan 3 has no conditions. Rate: 3.1% per year. Interest for Plan 3: $I_3 = 50000\times0.031\times2 = 3100$.

Step4: Compare Eligible Plans

Eligible plans: Plan 1, Plan 3. $I_1 = 3500$, $I_3 = 3100$. So Plan 1 pays more interest.

Answer:

Available plans: Plan 1, Plan 3. Plan 1 pays the most interest (interest = $3500$ vs Plan 3's $3100$; Plan 2 ineligible due to 3 - year minimum).