Answer:
Better deal will be to take money after one year because there will be a profit of $1400 - $1060 = $340
Step-by-step explanation:
It is given that there is two option either you take $1400 after one year or $100 now
It is given that you can invest $1000 at a rate of 6% interest
So interest in one year [tex]=\frac{1000\times 6\times 1}{100}=$60[/tex]
So amount after 1 year = $1000+$60 = $1060
So better deal will be to take money after one year because there will be a profit of $1400 - $1060 = $340
