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Flauer [41]
3 years ago
9

Use the compound interest formulas A = Pert and A = P(1 + ) to solve. Suppose that you have $11,000 to invest. Which investment

yields the greater return over 10 years: 6.25% compounded continuously or 6.3% compounded semiannually? Show your work
Mathematics
1 answer:
gulaghasi [49]3 years ago
3 0

Answer:

Continuously

Step-by-step explanation:

Compounded continuously:

A = Pe^(rt)

A = 11,000 e^(0.0625 × 10)

A = 20,550.71

Compounded semiannually (twice per year):

A = P(1 + r)^t

A = 11,000 (1 + 0.063/2)^(2×10)

A = 11,000 (1 + 0.0315)^20

A = 20,453.96

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