Answered

Welcome to Westonci.ca, the ultimate question and answer platform. Get expert answers to your questions quickly and accurately. Discover comprehensive solutions to your questions from a wide network of experts on our user-friendly platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

Suppose that you have $5,000 to invest. Which investment yields the greater return over a 10 year period: 7.74% compounded daily or 7.8% compounded quarterly? Find the total amount of the investment after 10 years if $5,000 is invested at 7.74% compounded daily. $ (Round to the nearest cent as needed.)​

Sagot :

atashinchiii

Answer:

We should invest in 7.74% compounded daily as it yields a higher return.

The total investment after 10 years is $10,841.22.

Step-by-step explanation:

a.) at 7.74% compounded daily

[tex]final = principal(1 + \frac{i}{m} )^{m \times n} \\ = 5000(1 + \frac{0.0774}{365} )^{365 \times 10} \\ = 10 \: 841.2235[/tex]

I assumed there are 365 days in a year.

b.) at 7.8% compounded quarterly

[tex]final = principal(1 + \frac{i}{m}) ^{m \times n} \\ = 5000 (1 + \frac{.078}{4} )^{4 \times 10} \\ = 10 \: 762.2505[/tex]

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.