An author receives a $7,600 advance payment for a book publishing deal and wants to place the money in a savings account for 8 years. Which account would have a larger balance if interest is compounded semi-annually at 3.62%, compared to continuously compounded interest at 3.52%? The semi-annually compounded account will have a larger balance of $10,071.89. The continuously compounded account will have a larger balance of $10,071.89. The semi-annually compounded account will have a larger balance of $10,126.53. The continuously compounded account will have a larger balance of $10,126.53.
An author receives a $7,600 advance payment for a book publishing deal and wants to place the money in a savings account for 8 years. Which account would have a larger balance if interest is compounded semi-annually at 3.62%, compared to continuously compounded interest at 3.52%? The semi-annually compounded account will have a larger balance of $10,071.89. The continuously compounded account will have a larger balance of $10,071.89. The semi-annually compounded account will have a larger balance of $10,126.53. The continuously compounded account will have a larger balance of $10,126.53.
Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter11: Exponential And Logarithmic Functions
Section11.2: Applications Of Exponential Functions
Problem 27PS
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An author receives a $7,600 advance payment for a book publishing deal and wants to place the money in a savings account for 8 years. Which account would have a larger balance if interest is compounded semi-annually at 3.62%, compared to continuously compounded interest at 3.52%?
The semi-annually compounded account will have a larger balance of $10,071.89.
The continuously compounded account will have a larger balance of $10,071.89.
The semi-annually compounded account will have a larger balance of $10,126.53.
The continuously compounded account will have a larger balance of $10,126.53.
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