Mira has saved $25,000 over the years and she has the option of investing it in either of the two investment plans. Investment A offers 12 percent interest compounded monthly, whereas Investment B pays 13 percent interest compounded semiannually. What would be the difference between the future values of the two investments if Mira's investment horizon is seven years?

A. $4,204.52
B. $3,577.87
C. $1,152.34
D. $2,703.78
E. $3,250.22


Answer: D

Business

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