You have $12,000 to invest and want to keep your money invested for 8 years. You are considering the following investment options. Choose the investment option that will earn you the most money.

Compare how much each option grows to after 8 years. The annual option at 4.175% gives $12,000(1.04175)^8, or about $16,650. The other options grow to about $16,500 for 3.99% compounded monthly, $16,500 for 4% compounded quarterly, and $16,032 for 4.2% simple interest, so the 4.175% compounded annually option earns the most.

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