(Comparing Types of Interest MC)

A police officer invested $8,000 in a treasury bond paying 3.25% interest compounded quarterly. After 25 years, the value of the bond will be $17,969.19. If the police officer's investment was compounded continuously instead of four times per year, what would be the difference in the account balances after 25 years?

$183.81
$164.86
$68.06
$59.09

Question

(Comparing Types of Interest MC)

A police officer invested $8,000 in a treasury bond paying 3.25% interest compounded quarterly. After 25 years, the value of the bond will be $17,969.19. If the police officer's investment was compounded continuously instead of four times per year, what would be the difference in the account balances after 25 years?

$183.81
 $164.86
 $68.06
 $59.09

Deadshot · Answer

The difference in the account balances after 25 years would be $59.09.