## anonymous 4 years ago Check my work please? Use the compound interest formula. given three of the quantities, A, P, r and t, find the remaining one. question: If you invest 7400 for 5 years which will return more money : an interest rate of 5% compounded quarterly or an interest rate of 4.8% compounded continuously. For the first one I got $7874.21 and for the second one I got 7407.24 concluding that the second investment will return the most money. Is this correct? • This Question is Closed 1. anonymous $A=P \left( 1+\frac{r}{n} \right)$ n = number of times the interest is compounded per year 2. Directrix If you invest$7400 at 5% compounded quarterly for 5 years, you will have $9487.08 3. Directrix Results: Continuous Compound Interest on Savings Deposit Amount: 7,400.00 Rate: 4.8 % Duration: 5 years$9,407.26

4. anonymous

|dw:1328693502617:dw| where, A = the total amount P = principal amount r = interest m= rate of conversion per year (i,e,. quarterly, semi-anually, etc.) n = number of years

5. anonymous

|dw:1328693712122:dw|

6. Directrix

7400( 1 + (.05/4) ) ^ 20 = $9 487 . 08 7. Directrix I did the first part of the problem again: If you invest 7400 for 5 years which will return more money : an interest rate of 5% compounded quarterly. That's why used 5. I'll do the second part again now. 8. anonymous a was looking only for the 4.8. . 9. anonymous lol.. 10. Directrix Do you have a different formula for compounding continuously? 11. anonymous yeah. . 12. Directrix 7400 (e) ^ [(.048)(5)] =$ 9 407 . 24 where e = 2.719 approx