Gregory may choose between two accounts in which to invest $5000, both at 2.3% interest. Account...
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Gregory may choose between two accounts in which to invest $5000, both at 2.3% interest. Account A offers 2.3% annual interest compounded monthly. Account B offers 2.3% continuous compound interest. Greg plans to leave his investment untouched (no further deposits and no withdrawals) for 10 years. (a) Which account will yield the greater balance at the end of 10 years? (b) How much more money does Greg earn by choosing this more profitable account (round to the nearest cent)? Gregory may choose between two accounts in which to invest $5000, both at 2.3% interest. Account A offers 2.3% annual interest compounded monthly. Account B offers 2.3% continuous compound interest. Greg plans to leave his investment untouched (no further deposits and no withdrawals) for 10 years. (a) Which account will yield the greater balance at the end of 10 years? (b) How much more money does Greg earn by choosing this more profitable account (round to the nearest cent)?
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To compare the total balance in each account after 10 years we can use the formula for compound ... View the full answer
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