SOLUTION: suppose that you have $5000 to invest. which investment yields the greater return over 10 years: 5.4% compounded monthly or 5.5% compound quarterly?

SOLUTION: suppose that you have $5000 to invest. which investment yields the greater return over 10 years: 5.4% compounded monthly or 5.5% compound quarterly?

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Question 953415: suppose that you have $5000 to invest. which investment yields the greater return over 10 years: 5.4% compounded monthly or 5.5% compound quarterly?
Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
FV=5000(1+0.054/12)^(10*12)
FV=5000(1.0045)^120
FV=5000(1.7139)
FV=8569.65
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FV=5000(1+00.055/4)^(10*4)
FV=5000(1.01375)^40
FV=5000(1.72677)
FV=8633.85
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