A principal amount of $2,600 is placed in a savings account with an APR of 4.2% compounded semi-annually for 7 years. The same principal amount is placed in a savings account with an APR of 2.3% compounded continuously for 10 years. Which account earns more interest?  The semi-annually compounded interest account earns more, with $672.36 in total interest earned.  The continuously compounded interest account earns more, with $878.03 in total interest earned.  The continuously compounded interest account earns more, with $672.36 in total interest earned.  The semi-annually compounded interest account earns more, with $878.03 in total interest earned.

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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A principal amount of $2,600 is placed in a savings account with an APR of 4.2% compounded semi-annually for 7 years. The same principal amount is placed in a savings account with an APR of 2.3% compounded continuously for 10 years. Which account earns more interest?

 The semi-annually compounded interest account earns more, with $672.36 in total interest earned.

 The continuously compounded interest account earns more, with $878.03 in total interest earned. 

The continuously compounded interest account earns more, with $672.36 in total interest earned. 

The semi-annually compounded interest account earns more, with $878.03 in total interest earned.

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