Question

You are planning to invest $500 in a savings account and are deciding between two options. Account #1 earns 2.9% annual interest and is compounded continuously. Account #2 earns 3.1% annual interest and compounded monthly. Which savings account will yield the greater amount after 5 years?

Answer 1

Option 1 has a return of about $899.13

Option 2 has a return of $582.46

Option 1 is better

Explanation:

This is the work
`500\cdot\left(e^(1.029)-1\right)`= $899.13 shown which plugged into desmos gets that result. For the second equation i just did it like 500*1.031= until i got the answer of 582.456278117 or rounded to $582.46