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
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