Answer:
see below
Step-by-step explanation:
principal = $5,000
interest rate = 2.3%
account A: compound monthly for 10 years
account B: compound continuously for 10 years
account A: compound monthly for 10 years
A = P (1 + r/12)^ r*t
= $5,000 (1 + .023/12)^ 12(10)
= $6,291.6
account B: compound continuously for 10 years
FVn = PV * e^r*t
= $5,000 * e ⁽⁰ ⁰²³ˣ¹⁰⁾
= $6,293
Gregory may chose account B. (but the difference is only $1.40)
