Two different investment companies offer college savings plans, one at 8.4% compounded continuously and the other at 8.6% compounded quarterly. Which is the better investment?
1 answer
The better investment depends on the amount of money being invested and the length of time it will be invested for. Generally, the 8.6% compounded quarterly plan will be the better investment for shorter-term investments, while the 8.4% compounded continuously plan will be the better investment for longer-term investments.