3 years ago

Which is the better choice: $1000 deposited for a year: you must show your work below.

1 answer:

4 0

A. The multiplier is (1 +.055/12)^12 ≈ 1.0564079

b. The multiplier is (1 +.054/365)^365 ≈ 1.0554804

c. The multiplier is e^.045 ≈ 1.0460279

The rate 5.5% compounded monthly is the better choice.

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