posted by Phoebe on .
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?
a) first offer
amount = 60000(1 + .07/4)^20 = 84886.69
amount = 60000 e^(.0675(5)) = 84086.38
b) subtract the two amounts