Answer:
Monthly Compounding
Total = principal * (1 + rate / 12) ^ years * 12
Total = 5,000 * (1 + (.038/12) )^84
Total = 5,000 * 1.30418682
Total = 6,520.93
Continuous Compounding
Total = principal * e ^ (rate * years)
Total = 5,000 * 2.718281828459 ^ (.035 * 7)
Total = 5,000 * 2.718281828459 ^ (0.245
)
Total = 5,000 * 1.2776213132
Total = 6,388.11
So, Kelsey should choose the monthly compounding bank.
Step-by-step explanation:
