An employee wants to invest $50,000 in a pension plan. One investment offers 6% compounded quarterly. Another offers 5.25% compounded continuously (a) Which investment will earn more interest in 6 yr? (b) How much more will the better plan earn? (a) After 6 years, will earn more interest. ...

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 68SE: An investment account with an annual interest rateof 7 was opened with an initial deposit of 4,000...
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An employee wants to invest $50,000 in a pension plan. One investment offers 6% compounded quarterly. Another offers 5.25% compounded continuously
(a) Which investment will earn more interest in 6 yr?
(b) How much more will the better plan earn?
(a) After 6 years,
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Bi
4
will earn more interest.
Transcribed Image Text:An employee wants to invest $50,000 in a pension plan. One investment offers 6% compounded quarterly. Another offers 5.25% compounded continuously (a) Which investment will earn more interest in 6 yr? (b) How much more will the better plan earn? (a) After 6 years, View an example Get more help - earch Bi 4 will earn more interest.
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