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Suppose you have $14,000 to invest. Which of the two rates would yield the larger amount in 5 years: 10% compounded daily or 9.86% compounded
Suppose you have $14,000 to invest. Which of the two rates would yield the larger amount in 5 years: 10% compounded daily or 9.86% compounded continuously? Click the icon to view some finance formulas. Which of the two rates would yield the larger amount in 5 years? 9.86% compounded continuously 10% compounded daily In the provided formulas, A is the balance in the account after t years, P is the principal investment, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and Y is the investment's effective annual yield in decimal form. A=P(1+nr)ntP=(1+nr)ntAA=PertY=(1+nr)n1
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