Question

Determine which is the better investment.

6.8% compounded semiannually or 6.6% compounded quarterly?

Answer 1

An easy way to do this is to choose a term of 1 year and $1 amount.

You can then use the formulas.

For the first one:

P(1+r/2)^2 let P = 1 and r = .068

Do you know how to set up the second one?

Answer 2

yes thanks so much :D