Use the Compound Interest Formulas A $$A = P \left( 1 + \frac { r } { n } \right) ^ { n t }$$

question 17

Multiple Choice

Use the compound interest formulas A $$A = P \left( 1 + \frac { r } { n } \right) ^ { n t }$$ and A = Pert to solve.
-Suppose that you have $9000 to invest. Which investment yields the greater return over 7 years: 7.5% compounded continuously or 7.6% compounded semiannually?

• A) $9000 invested at 7.5% compounded continuously over 7 years yields the greater return.
• B) Both investment plans yield the same return.
• C) $9000 invested at 7.6% compounded semiannually over 7 years yields the greater return.

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Individuals or groups not directly involved in a contract who are nevertheless intended by the contracting parties to benefit from the contract's performance.

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