document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1158168>Question 1158168</A>: <I><SPAN STYLE=\"word-break: break-all;\"> . COLLEGE SAVINGS Shannon is choosing between two different savings accounts to<BR>\n" );
document.write( "keep her college fund in. The first account compounds interest semiannually at a rate of<BR>\n" );
document.write( "11.0%. The second account compounds interest continuously at a rate of 10.8%. If<BR>\n" );
document.write( "Shannon plans to keep her money in the account for 5 years, which account should she<BR>\n" );
document.write( "choose? Explain. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #781079 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=781079\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the formula for the first is P=Po(1+(.11/2)^10, the 10 being the number of times compounded.<BR>\n" );
document.write( "P=1.708Po\r<BR>\n" );
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document.write( "The second is P=Poe^rt, or Poe^(.108*5)or Poe^0.54=1.716 Po\r<BR>\n" );
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document.write( "Continuously compounding maximizes return, all other things being equal, and in this instance is better even with a slightly less rate of return. </SPAN>\n" );
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