Greatest Balance After 8 Years: Compounded Interest Homework

[imull]

Homework Statement

Assume that you can earn 6% on an investment, compounded daily. Which of the following options would yield the greatest balance after 8 years?
-$20,000 now
-$30,000 after 8 years
-$8000 now and $20,000 after 4 years
-$9000 now, $9000 after 4 years, and $9000 after 8 years

Homework Equations

A=P(1+r/n)^n

The Attempt at a Solution

I understand how to use the equation, where P is the investment, r is the interest rate, and n is the number of times interest is compounded, but I don't understand the last three choices. What does it mean by "$9000 now, $9000 after 4 years, and $9000 after 8 years"?

 

[Chestermiller]

Homework Statement

Assume that you can earn 6% on an investment, compounded daily. Which of the following options would yield the greatest balance after 8 years?
-$20,000 now
-$30,000 after 8 years
-$8000 now and $20,000 after 4 years
-$9000 now, $9000 after 4 years, and $9000 after 8 years

Homework Equations

A=P(1+r/n)^n

The Attempt at a Solution

I understand how to use the equation, where P is the investment, r is the interest rate, and n is the number of times interest is compounded, but I don't understand the last three choices. What does it mean by "$9000 now, $9000 after 4 years, and $9000 after 8 years"?

You invest $9000 now, you invest another $9000 four years from now, and you invest another $9000 eight years from now.

 

[imull]

Okay. I was sort of thinking that, but I wanted to be completely sure. Many thanks!