An employee wants to invest $60,000 in a pension plan. One investment offers 6% compounded semiannually. Another offers 5.25% compounded continuously. (a) Which investment will earn more interest in 4 yr? (b) How much more will the better plan earn?

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 4PT: An investment account was opened with aninitial deposit of 9,600 and earns 7.4 interest,compounded...
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An employee wants to invest $60,000 in a pension plan. One investment offers 6% compounded semiannually.
Another offers 5.25% compounded continuously.
(a) Which investment will earn more interest in 4 yr?
(b) How much more will the better plan earn?
(a) After 4 years,
……….
will earn more interest.
(
Transcribed Image Text:An employee wants to invest $60,000 in a pension plan. One investment offers 6% compounded semiannually. Another offers 5.25% compounded continuously. (a) Which investment will earn more interest in 4 yr? (b) How much more will the better plan earn? (a) After 4 years, ………. will earn more interest. (
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