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?

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?

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter10: Exponential And Logarithmic Functions

Section: Chapter Questions

Problem 387RE: In the following exercises, solve. 387. Sayed deposits $20,000 in an investment account. What will...

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Question

An employee wants to invest

$50,000

in a pension plan. One investment offers

compounded

quarterly.

Another offers

5.25%

compounded continuously.

(a) Which investment will earn more interest in

yr?

(b) How much more will the better plan earn?

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