document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1208832>Question 1208832</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Investing $8,000 for 6 years.<BR>\n" );
document.write( "Option #1 <BR>\n" );
document.write( "7% compounded monthly\r<BR>\n" );
document.write( "\n" );
document.write( "Option #2<BR>\n" );
document.write( "6.85% compounded continuously\r<BR>\n" );
document.write( "\n" );
document.write( "Which is the better investment? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #847300 by </B><A HREF=/tutors/aboutme.mpl?userid=math_tutor2020><B>math_tutor2020(3817)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=math_tutor2020><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=847300\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <font color=black size=3><BR>\n" );
document.write( "Option 1<BR>\n" );
document.write( "A = P*(1+r/n)^(n*t)<BR>\n" );
document.write( "A = 8000*(1+0.07/12)^(12*6)<BR>\n" );
document.write( "A = 12160.84 approximately when rounding to the nearest penny\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "Option 2<BR>\n" );
document.write( "A = P*e^(r*t) where e = 2.718 roughly<BR>\n" );
document.write( "A = 8000*e^(0.0685*6)<BR>\n" );
document.write( "A = 12066.60 approximately when rounding to the nearest penny\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "You earn slightly more with <font color=red>option 1</font>.<BR>\n" );
document.write( "The difference is 12160.84 - 12066.60 = 94.24 extra dollars.<BR>\n" );
document.write( "</font> </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );