SOLUTION: You have 70000 dollars to invest for 7 years. Which investment will provide the gather return, 5 percent compounded yearly or 4.75 compounded monthly?

SOLUTION: You have 70000 dollars to invest for 7 years. Which investment will provide the gather return, 5 percent compounded yearly or 4.75 compounded monthly?

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Question 997639: You have 70000 dollars to invest for 7 years. Which investment will provide the gather return, 5 percent compounded yearly or 4.75 compounded monthly?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
It is the difference between
{1+.05)^7=1.407 (that is how much the initial principal is multiplied by.
(1+(.0475/12))^84=1.394
The first one is better.
P=Po{1+rate/compoundings per year)^number of years*compounding per year
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