SOLUTION: Which of the following will provide a better yield. (Interest rates are annual.) Plan A: $40,000 invested for 3 years at 4.5% compounded quarterly Plan B: $40,000 investe

Question 227606: Which of the following will provide a better yield. (Interest rates are annual.)
Plan A: $40,000 invested for 3 years at 4.5% compounded quarterly
Plan B: $40,000 invested for 3 years at 4.4% compounded continuously

Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
A=P(1+r/n)^t*n
A=40000(1+.045/4)^3*4
A=40000(1.01125)^12
A=40000(1.1436774)
A=$45,747.10
-----------------
A=P(e)^rt
A=40000(2.7183)^.044*3
A=40000(2.7183)^.132
A=40000(1.1411)
A=$45,644.37
RELATED QUESTIONS
A total of $16,000 is divided among three investments. The annual interest rates for the... (answered by solver91311)

1. Wen Seng operates an ice cream shop. He is trying to decide whether to expand his... (answered by ikleyn)

A person wishes to deposit $5,000 per year in a savings account which earns interest of 8 (answered by ikleyn)

Equal amounts are invested at 5%, 7%, and 6% annual interest. If the three investments... (answered by richwmiller)

Equal amounts are invested at 5%,7%, and 9% annual interest. If the three investments... (answered by ikleyn,greenestamps)

Equal amounts are invested at 5%, 7%, and 8% annual interest. If the three investments... (answered by ankor@dixie-net.com)

Equal amounts are invested at�4%, 7%, and�8%�annual interest. If the three investments... (answered by richwmiller)

Equal amounts are invested at 4%, 7%, and 8% annual interest. If the three investments... (answered by ikleyn)