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A first saving account pays 5% compounded annually. A second saving account pays 5% compounded continuously. Which of the two investments is better in the long term?
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A first saving account pays 5% compounded annually. A second saving account pays 5% compounded continuously. Which of the two investments is better in the long term?

User Brian Oliver
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1 Answer

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The account that’s compounded continuously is the better investment long-term because you accrue interest on top of interest on a daily basis which grows exponentially.
User Nick Marinakis
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