College Algebra

posted by .

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 -

    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

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math

    A prfessor wants to supplement her pension with investment interst. If she invest $28,000 at 6%, how much more would she have to invest at 7% to achieve a goal of %3,500 per year in supplemental income?
  2. Algebra

    A grandmother is looking for a plan to finance her new grandchild’s college education. She has $25,000 to invest. Search the internet and locate a long-range investment plan, CD, Savings Bond, etc, for the grandmother. The plan is …
  3. college algebra

    A grandmother is looking for a plan to finance her new grandchild’s college education. She has $25,000 to invest. Search the internet and locate a long-range investment plan, CD, Savings Bond, etc, for the grandmother. The plan is …
  4. algebra

    grandma ploan to finance her grandchilds college education she has 50,000 to invest use a long range investment pln ,cd,saving bond etc. the plan is to earn compound interest.the principal is(p)50,000 interest rate is (r)3.60years …
  5. math

    Splitting investments. Joan had $3,000 to invest. She invested part of it in an investment paying 8% and the remainder in an investment paying 10%. If the total income on three investments was $290, than how much did she invest at …
  6. College Algebra

    You plan to invest $12,000 in two funds paying 41/2% and 5% simple interest. (There is more risk in the 5% fund.) Your goal is to obtain a total annual interest income of $580 from the investment. What is the smallest amount you can …
  7. College Algebra

    20. Growth of an Account If Russ (see Exercise 19) chooses the plan with continuous compounding, how long will it take for his $60,000 to grow to $80,000?
  8. accounting

    In recent years, there has been a lot of media coverage about the funding status of pension plans for state employees. In many states, the amount of money invested in employee pension plans is far less than the amount estimated to …
  9. College Alg.

    An investor has up to $650,000 to invest in two types of investments. Type A pays 13% annually and type B pays 7% annually. To have a well-balanced portfolio, the investor imposes the following conditions. At least one-half of the …
  10. college algebra

    I'm completely drawing a blank on how to do this. A woman has $500,000 invested into two real estate properties. One yields an annual return on 12% and the other returns 15% per year on her investment. Her total annual return from …

More Similar Questions