Asked by Raju
Which is worth more after 5 years, an investment of $1000 at 5% interest compounded semi - annually(twice a year). or an investment of $1000 at 5% interest compounded continuously?
Answers
Answered by
Reiny
a)
amount = 1000(1.025)^10
= 1280.08
b)
amount = 1000 e^(5(.05))
= 1000 e^.25
= 1284.03
amount = 1000(1.025)^10
= 1280.08
b)
amount = 1000 e^(5(.05))
= 1000 e^.25
= 1284.03
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.