Posted by **BJ** on Monday, October 4, 2010 at 10:51pm.

Which investment option will pay the most interest?

A. 12.6% compounded annually

B. 12.4% compounded semiannually

C. 12.2% compounded quarterly

D. 12.0% compounded continuously

E. These investments all pay the same amount of interest.

- PreCalc -
**Reiny**, Monday, October 4, 2010 at 10:59pm
a) 1.126^1 =

b) (1.062)^2 =

c) (1.0305)^4 =

d) (e)^.12 =

- PreCalc -
**BJ**, Monday, October 4, 2010 at 11:06pm
Where did you get the values from?

- PreCalc -
**Reiny**, Monday, October 4, 2010 at 11:09pm
Are you not studying compound interest?

e.g.

c) rate is 12.2 compounded quarterly,

so in (1+i)^n

i = .122/4 = .0305

n = 4

so (1+.0305)^4 = 1.0305)^4

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