SOLUTION: Use the compound interest formulas A=P((1)+(r/n))^(nt) and A=Pe^(rt) to solve.
Suppose that you have $10000 to invest. which investment yields the greater return over 4 years: 8.7
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-> SOLUTION: Use the compound interest formulas A=P((1)+(r/n))^(nt) and A=Pe^(rt) to solve.
Suppose that you have $10000 to invest. which investment yields the greater return over 4 years: 8.7
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Question 326914: Use the compound interest formulas A=P((1)+(r/n))^(nt) and A=Pe^(rt) to solve.
Suppose that you have $10000 to invest. which investment yields the greater return over 4 years: 8.75% compounded continuously or 8.9% compounded semiannually?
a. Both investments yield the same return.
b. $10000 invested at 8.9% compounded semiannually over 4 years yields the greater return.
c. $10000 invested at 8.75% compounded continuously over 4 years yields the greater return. Answer by solver91311(24713) (Show Source):
Either way, you are going to calculate a number to be multiplied by the principal amount in order to calculate the total amount of the investment. Since the principal amount is the same in both scenarios, it is sufficient to compare the multipliers to answer the question.
Which is larger:
or
I'll leave you alone to spend some quality time with your calculator.
