Which is the better choice: $1000 deposited for a year: you must show your work below.

a. at a rate of 5.5% compounded monthly?

b. at a rate of 5.4% compounded daily?

c. at a rate 4.5% compounded continuously?

Question

Mathematics

Tobie

10 December, 07:35

Which is the better choice: $1000 deposited for a year: you must show your work below.

a. at a rate of 5.5% compounded monthly?

b. at a rate of 5.4% compounded daily?

c. at a rate 4.5% compounded continuously?

+3

Answers (1)

Know the Answer?

Turbo · Answer 1

A. The multiplier is (1 +.055/12) ^12 ≈ 1.0564079

b. The multiplier is (1 +.054/365) ^365 ≈ 1.0554804

c. The multiplier is e^.045 ≈ 1.0460279

The rate 5.5% compounded monthly is the better choice.

Which is the better choice: $1000 deposited for a year: you must show your work below.a. at a rate of 5.5% compounded monthly?b. at a rate of 5.4% compounded daily?c. at a rate 4.5% compounded continuously?

Which is the better choice: $1000 deposited for a year: you must show your work below.

a. at a rate of 5.5% compounded monthly?

b. at a rate of 5.4% compounded daily?

c. at a rate 4.5% compounded continuously?