SOLUTION: Use the compound interest formulas A=p(1+r/n)^nt and A=pe^rt to solve. Suppose that you have $11,000 to invest. Which investment yields the greater return over 5 years: 5.4% comp

Question 1088398: Use the compound interest formulas A=p(1+r/n)^nt and A=pe^rt to solve.
Suppose that you have $11,000 to invest. Which investment yields the greater return over 5 years: 5.4% compounded monthly or 5.5% compounded quarterly?
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
I read the problem. The directions are clear and the formulas are correct. Use them, follow instructions.
Note, though, that you have one formula for compound interest and another for continuous compounding interest (A=pe^rt). If your calculator doesn't have a key for e, use 2.718. But I don't think you have to worry because the problem only asks you to solve for compound interest, the first one is:
A= 11000(1+(0.054/12))^(12*5)
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