Use the Formula A $$A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { or } A = P e ^ { r t } \text { to solve. }$$

Multiple Choice

Use the formula A $$A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { or } A = P e ^ { r t } \text { to solve. }$$
-Suppose that you have $3000 to invest. Which investment yields the greater return over 7 years: 5.4% compounded monthly or 5.5% compounded quarterly?

A) Both investment plans yield the same return.
B) $3000 invested at 5.5% compounded quarterly over 7 years yields the greater return.
C) $3000 invested at 5.4% compounded monthly over 7 years yields the greater return.