SOLUTION: Which of the following will provide a better yield. (Interest rates are annual.) Plan A: $40,000 invested for 3 years at 4.5% compounded quarterly Plan B: $40,000 investe

Algebra ->  Logarithm Solvers, Trainers and Word Problems -> SOLUTION: Which of the following will provide a better yield. (Interest rates are annual.) Plan A: $40,000 invested for 3 years at 4.5% compounded quarterly Plan B: $40,000 investe      Log On


   

Question 227606: Which of the following will provide a better yield. (Interest rates are annual.)
Plan A: $40,000 invested for 3 years at 4.5% compounded quarterly
Plan B: $40,000 invested for 3 years at 4.4% compounded continuously
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
A=P(1+r/n)^t*n
A=40000(1+.045/4)^3*4
A=40000(1.01125)^12
A=40000(1.1436774)
A=$45,747.10
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A=P(e)^rt
A=40000(2.7183)^.044*3
A=40000(2.7183)^.132
A=40000(1.1411)
A=$45,644.37