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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?
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

anonymous
 4 years ago
Best ResponseYou've already chosen the best response.0\[A=P \left( 1+\frac{r}{n} \right)\] n = number of times the interest is compounded per year

Directrix
 4 years ago
Best ResponseYou've already chosen the best response.0If you invest $7400 at 5% compounded quarterly for 5 years, you will have $ 9487.08

Directrix
 4 years ago
Best ResponseYou've already chosen the best response.0Results: Continuous Compound Interest on Savings Deposit Amount: 7,400.00 Rate: 4.8 % Duration: 5 years $9,407.26

anonymous
 4 years ago
Best ResponseYou've already chosen the best response.0dw:1328693502617:dw where, A = the total amount P = principal amount r = interest m= rate of conversion per year (i,e,. quarterly, semianually, etc.) n = number of years

anonymous
 4 years ago
Best ResponseYou've already chosen the best response.0dw:1328693712122:dw

Directrix
 4 years ago
Best ResponseYou've already chosen the best response.07400( 1 + (.05/4) ) ^ 20 = $ 9 487 . 08

Directrix
 4 years ago
Best ResponseYou've already chosen the best response.0I 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.

anonymous
 4 years ago
Best ResponseYou've already chosen the best response.0a was looking only for the 4.8. .

Directrix
 4 years ago
Best ResponseYou've already chosen the best response.0Do you have a different formula for compounding continuously?

Directrix
 4 years ago
Best ResponseYou've already chosen the best response.07400 (e) ^ [(.048)(5)] = $ 9 407 . 24 where e = 2.719 approx
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