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 accountâ€™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?

## Answer This Question

## Related Questions

- Compound math - (Future Value) Suppose you invest $8000 into an account that ...
- Algebra ASAP - Suppose that $17,000 is invested in a savings account paying 5.1...
- Math - Using the formula. I =Prt ,calculate the simple interest where t=1/n and ...
- Interest - You deposit $4000 in an account earning 5% interest compounded ...
- math - Compound Interest Question James has 10,000 to invest. If he invest money...
- Kirr - *solve execises by using compounded interest formula Principal $ 700 ...
- pre - CALCULUS - Use the compound interest formulas A = Pert and A = P(1 + &#...
- Calc - How much money will we have in 6 months if we invest $1000 into an ...
- MatHematics - After a 20 year period Josh's lump sum investment matures to an ...
- Math - $ 2631 is deposited into an account for 15 years. Determine the ...

More Related Questions