An employee wants to invest $50,000 in a pension plan. One investment offers 6% compounded quarterly. Another offers 5.25% compounded continuously. (a) Which investment will earn more interest in 6 yr? (b) How much more will the better plan earn? (a) After 6 years, the 6% compounded quarterly plan will earn more interest. (b) The better plan will earn $ more. (Round to the nearest cent as needed.)
An employee wants to invest $50,000 in a pension plan. One investment offers 6% compounded quarterly. Another offers 5.25% compounded continuously. (a) Which investment will earn more interest in 6 yr? (b) How much more will the better plan earn? (a) After 6 years, the 6% compounded quarterly plan will earn more interest. (b) The better plan will earn $ more. (Round to the nearest cent as needed.)
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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Transcribed Image Text:An employee wants to invest $50,000 in a pension plan. One investment offers 6% compounded quarterly. Another offers 5.25% compounded continuously.
(a) Which investment will earn more interest in 6 yr?
(b) How much more will the better plan earn?
(a) After 6 years,
the 6% compounded quarterly plan
will earn more interest.
(b) The better plan will earn $
more. (Round to the nearest cent as needed.)
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