Check my work please?

Use the compound interest formula. given three of the quantities, A, P, r and t, find the remaining one.

question:
If you invest 7400 for 5 years which will return more money : an interest rate of 5% compounded quarterly or an interest rate of 4.8% compounded continuously.

For the first one I got $7874.21 and for the second one I got 7407.24 concluding that the second investment will return the most money.

Is this correct?

Question

Check my work please?

Use the compound interest formula. given three of the quantities, A, P, r and t, find the remaining one.

question:
If you invest 7400 for 5 years which will return more money : an interest rate of 5% compounded  quarterly or an interest rate of 4.8% compounded continuously. 

For the first one I got $7874.21 and for the second one I got 7407.24 concluding that the second investment will return the most money.

Is this correct?

anonymous · Answer

$$A=P \left( 1+\frac{r}{n} \right)$$


n = number of times the interest is compounded per year

directrix · Answer

If you invest $7400 at 5% compounded quarterly for 5 years, you will have $ 9487.08

directrix · Answer

Results: Continuous Compound Interest on Savings
Deposit Amount: 7,400.00
Rate: 4.8 %
Duration: 5 years
$9,407.26

anonymous · Answer

|dw:1328693502617:dw| where, 
A = the total amount
P = principal amount
r = interest
m= rate of conversion per year (i,e,. quarterly, semi-anually, etc.)
n = number of years