Use Compound Interest Formulas
Use the Compound Interest Formulas A A =

Multiple Choice

Use Compound Interest Formulas
Use the compound interest formulas A $$A = P \left( 1 + \frac { r } { n } \right) \text { and } A = P e ^ { r t } \text { to solve }$$
-Suppose that you have $10,000 to invest. Which investment yields the greater return over 6 years: 5.4% compounded monthly or 5.5% compounded quarterly?

A) $10,000 invested at 5.5% compounded quarterly over 6 years yields the greater return.
B) $10,000 invested at 5.4% compounded monthly over 6 years yields the greater return.
C) Both investment plans yield the same return.