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

Multiple Choice

Use the compound interest formulas A $$A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$$
-Suppose that you have $4000 to invest. Which investment yields the greater return over 10 years: 6.25% compounded continuously or 6.3% compounded semiannually?

A) $4000 invested at 6.25% compounded continuously over 10 years yields the greater return.
B) $4000 invested at 6.3% compounded semiannually over 10 years yields the greater return.
C) Both investment plans yield the same return.