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July 22, 2014

July 22, 2014

Posted by **Sabrina** on Monday, April 25, 2011 at 4:50pm.

6.2% simple interest

6.1% compounded annually

5.58% compounded semiannually

5.75% compounded quarterly

Which account(s) should he choose if he wants to invest the smallest amount of money now?

- math -
**Reiny**, Monday, April 25, 2011 at 5:55pmconsider the amount of $1 at the end of 2 years

at 6.2% simple ---- 1 + (1)(.062)(2) = $1.124

at 6.1 comp. annually ---- (1.061)^2 = $1.1257

at 5.58% com. semi --- (1.0279)^4 = $1.11636

at 5.75% comp. quarterly -- (1.014375)^8 = 1.12096

so what do you think?

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