Two different investment companies offer college savings plans, one at 8.4% compounded continuously and the other at 8.6% compounded quarterly. Which is the better investment?
The better investment depends on the amount of money being invested and the length of time it will be invested for. Generally, the 8.6% compounded quarterly plan will be the better investment for shorter-term investments, while the 8.4% compounded continuously plan will be the better investment for longer-term investments.
