document.write( "Question 1208832: Investing $8,000 for 6 years.
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\n" ); document.write( "\n" ); document.write( "Option #2
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Algebra.Com's Answer #847302 by ikleyn(52793) $\"\"$ $\"About$

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document.write( "In order for to determine which investment is better in this problem, \r\n" );
document.write( "there is no need to calculate the final future value after 6 years.\r\n" );
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document.write( "It is enough to count the effective growth factor in one year.\r\n" );
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document.write( "From one side hand, we have  the effective yearly growth factor of\r\n" );
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document.write( "     = 1.072290081...   (for 7% compounded monthly)\r\n" );
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document.write( "From the other side, we have the effective yearly growth factor \r\n" );
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document.write( "     =  = 1.070900576...   (for 6.85% compounded continuously)\r\n" );
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document.write( "Where yearly effective yearly growth factor is greater, there the investment is better.\r\n" );
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document.write( "ANSWER.  Option 1 is better.\r\n" );
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