Compare the balance after 25 years of a $10,000 investment earning 6.75% interest compounded continuously to the same investment compounded semiannually.

Question

anonymous · Answer

$$10,000\times e^{.0675\times 25}$$ vs 
$$10,000\times (1+\frac{.0675}{2})^{50}$$ then a calulator

anonymous · Answer

So, the answer would be 52574.61826?

anonymous · Answer

i don't know i didn't do it. but you have to compare the two answers

anonymous · Answer

The first equation gave me 5232.481438
The second equation gave me 52574.61826

anonymous · Answer

hmm then something is wrong because first one should be larger than second one

anonymous · Answer

first one http://www.wolframalpha.com/input/?i=10%2C000e^%28.0675*25%29 second one http://www.wolframalpha.com/input/?i=10000%281%2B.0675%2F2%29^50

anonymous · Answer

I don't know what to do now? Are those the answers?