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22 January, 22:40

Suppose that you have $10,000 to invest over a 3 year period. There are two accounts to choose from: 4% compounded monthly or 3.5% compounded continuously.

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  1. 22 January, 22:55
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    4% compounded monthly: $10000 (1+0.04/12) ^36 = $11272.72

    3.5% compounded continuously: $10000e^[0.035*3] = $11107.11.

    Which one pays the most in interest?
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