You want to invest $15150in an account and plan to leave it there for 6 years. There are three options for investing your money.Account A pays 6.7% interest per year, compounded semiannually (2 times per year).Account B pays 6.7% interest per year, compounded monthly (12 times per year).Account C pays 6.7% interest per year, compounded four times per day (1460 times per year).For each account, determine only the annual growth factor for the account value. Look at the preview values before submitting your answer so you can compare them.Account A's annual growth factor:Account B's annual growth factor: Account C's annual growth factor:

The annual growth factor for an account can be calculated using the formula:A=P(1+rn)ntWhere:- A is…

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2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter2: Exponential, Logarithmic, And Trigonometric Functions

Section2.1: Exponential Functions

Problem 53E: Interest Ron Hampton needs to choose between two investments: One pays 6% compounded annually, and...

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You want to invest $15150in an account and plan to leave it there for 6 years. There are three options for investing your money.

Account A pays 6.7% interest per year, compounded semiannually (2 times per year).
Account B pays 6.7% interest per year, compounded monthly (12 times per year).
Account C pays 6.7% interest per year, compounded four times per day (1460 times per year).

For each account, determine only the annual growth factor for the account value. Look at the preview values before submitting your answer so you can compare them.
1. Account A's annual growth factor:
2. Account B's annual growth factor:
3. Account C's annual growth factor:

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