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Reika [66]
3 years ago
12

Shannon is choosing between two different saving account for her college fund the first account compounds interest semiannually

at a rate of 11.0%. The second account compounds interest continuously at a rate of 10.8%. If Shannon plans to keep her money in the account for 5 years which account should she choose? Explain
Mathematics
1 answer:
Kitty [74]3 years ago
6 0
100×(1+0.11÷2)^(2×5)
=170.81

100×e^(0.108×5)
=171.60
So she should choose the account which pays the interest continuously
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