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Posted by on Thursday, June 20, 2013 at 5:07pm.

Please help me ASAP!!!!!!!!!!!! I did the work on most of these problems but I am still confused please help.
19. Comparing Investments Russ McClelland, who is self-employed, wants to invest $60,000 in a pension plan. One investment offers 7% compounded quarterly. Another offers 6.75% compounded continuously.
(a) Which investment will earn more interest in 5 yr?
(b) How much more will the better plan earn?

  • College Algebra - , Thursday, June 20, 2013 at 5:25pm

    a) first offer
    amount = 60000(1 + .07/4)^20 = 84886.69

    second offer:
    amount = 60000 e^(.0675(5)) = 84086.38

    b) subtract the two amounts

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