document.write( "Question 1167471: Kenneth ran into some money and decides to invest it for retirement. He has $75,000 to invest over
\n" ); document.write( "40 years. Find the effective rates given:
\n" ); document.write( "(a) 4.5% growth compounded monthly.
\n" ); document.write( "(b) 4.45% growth compounded continuously.
\n" ); document.write( "(c) Should Kenneth invest in option (a) or option (b)? Why? \n" ); document.write( "

Algebra.Com's Answer #851796 by ikleyn(52786) $\"\"$ $\"About$

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\n" ); document.write( "Kenneth ran into some money and decides to invest it for retirement. He has $75,000 to invest over
\n" ); document.write( "40 years. Find the effective rates given:
\n" ); document.write( "(a) 4.5% growth compounded monthly.
\n" ); document.write( "(b) 4.45% growth compounded continuously.
\n" ); document.write( "(c) Should Kenneth invest in option (a) or option (b)? Why?
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document.write( "To compare, calculate the effective rates per year.\r\n" );
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document.write( "(a)  effective rate per year is   = 1.045939825.\r\n" );
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document.write( "(b)  effective rate per year is   =  = 1.046027828.\r\n" );
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document.write( "(c)  The effective annual rate is greater in case (b),  so it is logical/(more profitable) to choose option (b).\r\n" );
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