document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=960012>Question 960012</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose that you have $3000 to invest. Which investment yields the greater return over 10 years: 8.75% compounded continuously or 8.9% compounded semiannually? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #586708 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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=586708\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Suppose that you have $3000 to invest. Which investment yields the greater return over 10 years: 8.75% compounded continuously or 8.9% compounded semiannually?<BR>\n" );
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document.write( "Continuous at 8.75%::<BR>\n" );
document.write( "A(10) = 3000*e^(0.0875*10) = $7196.63<BR>\n" );
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document.write( "8.9% compounded semiannually::<BR>\n" );
document.write( "A(10) = 3000(1+(0.089/2)]^(2*10) = $7166.22<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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