Multiple Choice
Solve the problem.
-Suppose that you have $12,000 to invest. Which investment yields the greater return over 7 years: 8.75% compounded continuously or 8.9% compounded semiannually?
A) $12,000 invested at 8.9% compounded semiannually over 7 years yields the greater return.
B) $12,000 invested at 8.75% compounded continuously over 7 years yields the greater return.
C) Both investment plans yield the same return.
Correct Answer:
Verified
Correct Answer:
Verified
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