SOLUTION: Bob can invest $3000.00 in a continuously compounded account or he can invest his $3000.00 in an account compounded monthly. Both accounts pay 2 1/4% interest.
a) which account wo
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-> SOLUTION: Bob can invest $3000.00 in a continuously compounded account or he can invest his $3000.00 in an account compounded monthly. Both accounts pay 2 1/4% interest.
a) which account wo
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Question 1096089: Bob can invest $3000.00 in a continuously compounded account or he can invest his $3000.00 in an account compounded monthly. Both accounts pay 2 1/4% interest.
a) which account would pay more ? Why ?
b) how much more will Bob earn ? Answer by Alan3354(69443) (Show Source):
You can put this solution on YOUR website! Bob can invest $3000.00 in a continuously compounded account or he can invest his $3000.00 in an account compounded monthly. Both accounts pay 2 1/4% interest.
a) which account would pay more ?
Continuous.
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Why ? It's compounded more frequently
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b) how much more will Bob earn ?
Depends on the time it's invested.
