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Investments and loans base the Interest calculations on one of two possible methods: the Interest and the Interest methods Both methods apply three variables-the amount

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Investments and loans base the Interest calculations on one of two possible methods: the Interest and the Interest methods Both methods apply three variables-the amount of principal, the Interest rate, and the Investment or deposit period-to the amount deposited or Invested In order to compute the amount of interest However, the two methods differ in their relationship between the variables. Assume that the variables I, N, and PV represent the interest rate, Investment or deposit period, and present value of the amount deposited or invested, respectively Which equation best represents the calculation of a future value (FV) using: Compound Interest? FV = PV x(1 + I)^N FV - (1 + I)^N/PV FV - PV/(1 + 1)^N Simple interest? FV = PV + (PV times I times N) FV = PV times I times N FV = PV times (PV times I times N) Identify whether the following statements about the simple and compound interest methods are true or false After the end of the second year and all other factors remaining equal, a future value based on compound interest will exceed a future value based on sample interest All other factors being equal, both the simple interest and the compound interest methods will not generate the amount of earned interest by the end of the first year. Everything else held constant, an account that earns compound interest will grow more quickly than an otherwise identical account that earns simple interest. Fedor is witting to invest $30,000 for three years, end is an economically rational investor He has identified three investment alternatives (A, B, and C) that vary in their method of calculating irterest and In the annual Interest rote offered. Since he can only make one investment during the three-year investment period, complete the following table and indicate whether Fedor should invest in each of the investments

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