An employee wants to invest ​$60,000 in a pension plan. One investment offers 5​% compounded quarterly. Another offers 4.25​% compounded continuously.   ​(a) Which investment will earn more interest in 5 ​yr? ​(b) How much more will the better plan​ earn?       Question content area bottom

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter10: Exponential And Logarithmic Functions
Section10.2: Evaluate And Graph Exponential Functions
Problem 10.32TI: Allan invested $10,000 in a mutual fund. If the interest rate is 5%, how much will be in the account...
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An employee wants to invest
​$60,000
in a pension plan. One investment offers
5​%
compounded
quarterly.
Another offers
4.25​%
compounded continuously.
 
​(a) Which investment will earn more interest in
5
​yr?
​(b) How much more will the better plan​ earn?
 
 
 

Question content area bottom

Part 1
​(a) After
5
​years,
 
the 4.25 % compounded continuously planthe 4.25% compounded continuously plan
the 5 % compounded quarterly planthe 5% compounded quarterly plan
will earn more interest.
Part 2
​(b) The better plan will earn
​$enter your response here
more. ​(Round to the nearest cent as​ needed.)
 
 
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