Solve the Problem. -Suppose That You Have $12,000 to Invest. Which Investment Yields

question 40

Multiple Choice

Solve the problem.
-Suppose that you have $12,000 to invest. Which investment yields the greater return over 7 years: 8.75% compounded continuously or 8.9% compounded semiannually?

• A)$12,000 invested at 8.9% compounded semiannually over 7 years yields the greater return.
• B)$12,000 invested at 8.75% compounded continuously over 7 years yields the greater return.
• C)Both investment plans yield the same return.