Omar has an investment valued at $12,345 today. He made a one-time investment at 6.5% four years ago. Leon has an investment that is also valued at $12,345 today. Leon invested four years ago at 7.5%. Omar originally invested _____ and Leon invested _____.
A) $9,568.24; $9,199.16
B) $9,596.05; $9,243.94
C) $9,608.14; $9,267.67
D) $9,633.33; $9,304.06
E) $9,652.18; $9,389.00

Question

Quizplus · Accepted Answer

To find the original investment, use the formula for compound interest: P = A / (1 + r)^n. For Omar: P = 12345 / (1 + 0.065)^4 = $9,596.05. For Leon: P = 12345 / (1 + 0.075)^4 = $9,243.94.

Omar Has an Investment Valued at $12,345 Today