SOLUTION: I deposited $6000 into an account that earns 7% compounded annually. A friend posits $5250 into an account that earns 6.85% annual interest compounded continously. So will my frien
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-> SOLUTION: I deposited $6000 into an account that earns 7% compounded annually. A friend posits $5250 into an account that earns 6.85% annual interest compounded continously. So will my frien
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Question 1201057: I deposited $6000 into an account that earns 7% compounded annually. A friend posits $5250 into an account that earns 6.85% annual interest compounded continously. So will my friend balance equal to mine? Answer by ikleyn(52781) (Show Source):
You can put this solution on YOUR website! .
I deposited $6000 into an account that earns 7% compounded annually.
A friend posits $5250 into an account that earns 6.85% annual interest compounded continously.
So will my friend balance equal to mine?
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The friend's account is this exponential function of time F(t) = .
The growth coefficient is = 1.070900576 per year.
As you see, the friend's growth coefficient is larger than yours (1.0709 against 1.07).
It is just enough to state that sometime, the friend's account will overcome your account.
