Use A=P(1+r/n)^nt and A=Pe^rt to solve this problem.
Suppose that you have $7000 to invest. Which investment yields the greater return over 8 years: 8.75% compounded continuously or 8.9% compounded semiannually??

Question

anonymous · Answer

obviously 8.9%

anonymous · Answer

how am i supposed to say why?.. because it's a higher percentage?

anonymous · Answer

hold on

anonymous · Answer

your job is to compute 
$$e^{8\times0.875}$$ and compare it to 
$$(1+\frac{.089}{2})^{16}$$ and see which is larger

anonymous · Answer

i will bet without even checking that the first number is bigger

anonymous · Answer

yes, it is bigger - the first one is 19.02 the second is 1.09

anonymous · Answer

$$e^{8\times0.0875}=2.01375...$$
$$(1+\frac{.089}{2})^{16}=2.0069433...$$

anonymous · Answer

oh, what the heck did i do?! lol

anonymous · Answer

oh, inputted the wrong number on the second one.