8
QuizMultiple Choice

Investment Strategies

Question 8 • * HSA 26-27 Economics

Tina has $1,000 per year she can invest to save money for her future.Which option would allow the highest growth for Tina's investment?

Answer
A
Tina can start investing the whole amount this year at 5% interest.
B
Tina can start investing the whole amount this year at 7% interest.
C
Tina can start investing half of the amount two years from now at 5% interest.
D
Tina can start investing half of the amount two years from now at 7% interest.

Explanation

Investing the full $1,000 this year at 7% gives Tina the greatest growth: it puts the most money to work earliest and earns the highest interest rate. Choice A invests the same amount at a lower rate, while choices C and D delay investing and use only half the amount.

AI-written and checked against the verified answer.

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