Homework Help: math

Posted by bob on Wednesday, October 3, 2012 at 8:51pm.

Suppose that you have $12,500 to invest over a 4 year period. There are two accounts to choose from: 4.5% compounded monthly or 4.3% compounded continuously.

a. Write the formula for the first account’s compound interest for n compounding per year.
b. Write the formula for the account with continuously compounded interest.
c. Use the formulas and information above to solve for the balance of each investment after 3 years.
d. Which investment account offers a better return on your money?

No one has answered this question yet.

Answer this Question

Related Questions

Finance - Calculate the accounts receivable period, accounts payable period, ...
math - A prfessor wants to supplement her pension with investment interst. If ...
math - Suppose $500 is divided into two bank accounts. One account pays 15% ...
Finance - 8. Assume you just turned 28. You want to accumulate $3.5 million by ...
Math - Jim Gray invested $8,500 four times a year in an annuity due at All-Star ...
math 2nd part - Right! :-) This year they have eight technicians on staff and ...
Math - A woman invested $15,000, part at 7% annual interest and the rest at 8%. ...
statistics - Suppose that you are evaluating two different alternatives. The ...
financial management - Suppose you invest $2,500 in an account bearing interest ...
Finance/Math - PLease help, I have a business finance class I am really ineed of...

For Further Reading

First Name:
School Subject:
Answer: