4. A teenager saves small dollar amounts throughout the school year and now has $712. They can now choose from two different bank offers: The first offer is 5.3% compounded continuously for six years. The second offer is 6.0% compounded quarterly for five years? Which account will vield the most money and what is the difference in dollar amounts between the accounts at the end of their term? Show your work/set-up!! Round to the nearest cent. Again, do not use commas in the #'s.
4. A teenager saves small dollar amounts throughout the school year and now has $712. They can now choose from two different bank offers: The first offer is 5.3% compounded continuously for six years. The second offer is 6.0% compounded quarterly for five years? Which account will vield the most money and what is the difference in dollar amounts between the accounts at the end of their term? Show your work/set-up!! Round to the nearest cent. Again, do not use commas in the #'s.
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Just need the answers for the fill in the blanks for question 4 and the physical work for it :)
Transcribed Image Text:4. A teenager saves small dollar amounts throughout the school year and now has $712. They can
now choose from two different bank offers: The fiirst offer is 53% compounded continuously for
six years, The second offer is 6.0X compounded quarterly for five years? Which account will
vield the most money and what is the difference in dollar amounts between the accounts at the
end of their term? Show your work/set-upll Round to the nearest cent. Again, do not use commas
in the #'s.
5.3% Acct: $
6.0% Acct: $
The account with
% yields the most money.
It yields $
more than the other account.
Expert Solution
Step 1 formulae used
1.) When interest is compounded annually -
Amount = p
2.)When interest is compounded quarterly-
Amount = P
P = principal value or initial value
R = rate % per annum
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