Question

can someone please help me, I have posted this before and could not get help..thanks
Suppose that you have $10,000 to invest over a 3 year period. There are two accounts to choose from: 4% compounded monthly or 3.5% compounded continuously.

a. Write the formula for the first account’s compound interest for n compoundings per year.
b. Write the formula for the account with continuously compounded interest.
c. Use the formulas and information above to solve for the balance of each investment after 3 years.
d. Which investment account offers a better return on your money?

Answer 1

\[1000(1+\frac{.04}{12})^{3\times 12}\] is the first one

Answer 2

A=P(1+r/n)^nt
A=Pe^rt
plug in

Answer 3

\[1000e^{.035\times 3}\] is the second

Answer 4

now you need a calculator because you cannot do this without one. only suggestion is that when you use one compute
\[3\times 12=36\] first so you just write
\[1000(1+\frac{.04}{12})^{36}\] for the first one

Answer 5

careful with parentheses on both of these