Question 79064
When compounding semiannually, let n= 2 in this formula, P=$7000, t=8, and r=.089
{{{A=P(1 + r/n)^(nt) }}}  
{{{A=7000(1 + .089/2)^(16) }}}
A=$14048.60


When compounding continuously, use this formula, P=$7000, t=8, and r=.0875

{{{A=Pe^(rt)}}} 
{{{A=7000e^(.0875*8)}}}
A=$14096.27


If I did the calculations right, it looks like the continous compounding at a slightly lower rate came out better!


R^2 at SCC