document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=31329>Question 31329</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Use compound the interest formulas<BR>\n" );
document.write( "A=P(1 +r/n) ^nt   and A = Pe^rt\r<BR>\n" );
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document.write( "Suppose that you have $14,000.00 to invest.  Which investment yields the greater return over 10 years:  7% compounded monthly or 6.85% compounded continuously?  I know what the answer is but I don't know how to get there.\r<BR>\n" );
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document.write( "Thanks for your assistance. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #18028 by </B><A HREF=/tutors/aboutme.mpl?userid=Nate><B>Nate(3500)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Nate><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=18028\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Compounded monthly:<BR>\n" );
document.write( "a=P(1+r)^t<BR>\n" );
document.write( "p=initial amount<BR>\n" );
document.write( "a=increased amount<BR>\n" );
document.write( "r= rate<BR>\n" );
document.write( "t=time<BR>\n" );
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document.write( "a=P(1+r)^t<BR>\n" );
document.write( "a=(14000)(1.07)^10<BR>\n" );
document.write( "about $27,540.12<BR>\n" );
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document.write( "compounded monthly:<BR>\n" );
document.write( "a=P(1+r/n)^nt<BR>\n" );
document.write( "same principles, but you have to deal with compounded as well<BR>\n" );
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document.write( "a=P(1+r/n)^nt<BR>\n" );
document.write( "a=(14000)(1+0.0685/12)^(120)<BR>\n" );
document.write( "about $27,718.77<BR>\n" );
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document.write( "COMPOUNDED MONTHLY GIVES YOU MORE! </SPAN>\n" );
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