document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=831276>Question 831276</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Please help me solve this word problem:<BR>\n" );
document.write( "Suppose you have $11,000 to invest. Which of the two rates would yield the larger amount in 1 year: 12% compounded daily or 11.8% compounded continuously? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #501219 by </B><A HREF=/tutors/aboutme.mpl?userid=Elomeht><B>Elomeht(22)</B></A><img src=\"/images/stars/stars-07.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Elomeht><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=501219\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 1.  12% compounded daily has a yearly accumulation factor of:<BR>\n" );
document.write( "    (1 + 0.12/365)^365 = 1.12747\r<BR>\n" );
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document.write( "2.  11.8% compounded continuously has a yearly accumulation factor of:<BR>\n" );
document.write( "    e^0.118 = 1.12524\r<BR>\n" );
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document.write( "3.  The 12% compounded daily is clearly larger, so the larger amount in one year is: 11000 times 1.12747 = 12402.2<BR>\n" );
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