|
Question 1179946: Use the compound interest formulas A = P(1 + r/n)^nt and A = Pe^rt to solve.
Suppose that you have $11,000 to invest. Which investment yields the greater return over 9 years: 7.5% compounded continuously or 7.6% compounded semiannually?
$11,000 invested at 7.5% compounded continuously over 9 years yields the greater return.
Both investment plans yield the same return.
$11,000 invested at 7.6% compounded semiannually over 9 years yields the greater return.
Answer by ikleyn(52781)   (Show Source):
You can put this solution on YOUR website! .
Having the formulas given, substitute the given data into the formulas and calculate; then compare the results.
I wish you have fun doing your job.
Also please keep in your mind that doing the students work like these simple calculations IS NOT the tutor's job or duty.
Also, please do not instruct me (and even do not try) how to teach:
I know it in 60 times better than you.
------------------
On discretely and continuously compounds accounts, read the lessons
- Problems on discretely compounded accounts
- Problems on continuously compounded accounts
in this site.
Also, you have this free of charge online textbook in ALGEBRA-I in this site
- ALGEBRA-I - YOUR ONLINE TEXTBOOK.
The referred lessons are the part of this online textbook under the topic "Logarithms".
Save the link to this online textbook together with its description
Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson
to your archive and use it when it is needed.
|
|
|
| |
