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11.03 15 You decide to invest $100.000 for 5 years and you have a choice between two accounts. The first pays 1% per year, compounded

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11.03 15 You decide to invest $100.000 for 5 years and you have a choice between two accounts. The first pays 1% per year, compounded monthly. The second pays 6.85% per year, compounded continuously a) Demonstrate that the first account (compounded monthly) is a better investment b) In order to make the second account (compounded continuously) generate better profit, we need to apply an interest rate on the second account that at least equalize the profit of the first account (compounded monthly). Determine such threshold-rate. (16 pts.)

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