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Ostrovityanka [42]
3 years ago
10

Please help with this math question

Mathematics
2 answers:
Ilya [14]3 years ago
8 0

Answer:

(a) The continuously compounding account

(b) $1.39

Step-by-step explanation:

(a) At identical interest rates, continuous compounding will yield the greatest account balance when compared to periodic forms of compounding (i.e., yearly, quarterly, monthly, weekly, etc.).

(b) By compounding interest monthly, Gregory's account balance will be $6,291.61 after 10 years. By compounding interest continuously, his balance will be $6,293.00. Therefore, by choosing the continuously compounding account, he will earn $1.39 more over 10 years.

Hatshy [7]3 years ago
3 0

Answer:

(a) Account B

(b) $1.39,

Step-by-step explanation:

(a) The  account with continuous compound interest will earn the most.

(b)  Amount with  2.3% interest = 5000(1 + (0,023/12))^120

= $6291.61.

Amount with Continuous compound interest

= 5000e^(0.023*10) = $6293.00.

Greg earns $1.39 more with Account B.

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