Question

PLEASE HELP!

Use the compound interest formulas and A = Pert to solve. Suppose that you have $11,000 to invest. Which investment yields the greater return over 10 years: 6.25% compounded continuously or 6.3% compounded semiannually?

A. Both investment plans yield the same return.
B. $11,000 invested at 6.3% compounded semiannually over 10 years yields the greater return.
C. $11,000 invested at 6.25% compounded continuously over 10 years yields the greater return.

Answer 1

first one

A=11000e^(10*0.0625)
A=20550.71

2nd one
A=11000(1+(0.063/2))^(2*10)
A=11000(1.0315)^20
A=20454.96

20454.96<20550.71


the first one (continuiosly) is the most retrn



C is answer