You place $1,000 in an account that pays 7% interest compounded continuously. You plan to hold the account exactly 3 years. Simultaneously, in another account you deposit money that earns 7.40% compounded semiannually. If the accounts are to have the same amount at the end of the 3 years, how much of an initial deposit do you need to make now in the account that pays 7.40% interest compounded semiannually?

Answer rating: 100% (QA)

To solve this problem we need to use the formula for compound interest A Pert where A the final amou... View the full answer