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# Greg may choose between 2 accounts in which to invest \$5000. Account A offers 2.3% annual interest compounded

monthly. Account B offers continuous compound interest. Greg plans to leave his investment untouched(no further deposits or withdrawals) for 10 years.Which account will yield the greater balance at the end of 10 years? How much more money does Greg earn by choosing this more profitable account?

Here we are given initial investment P = \$5000 Account A earns 2.3% compounded monthly Account B earns continuous interest .... View the full answer

continuous compound interest is better than annual interest. annual... View the full answer

Annual Interested Compounded 'S
Continuous Compound ?
5000 \$
monthy .
Interest : J
At
A = P ( 1+ 7 / )
A = Pert
12 xla
(0 . 023 ) ( 10 )
A = 5000 / 1 + 0 . 023
A = 5000 e
12
A = 6291 . 61
A = 6293...

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