Suppose $10,000 is invested today at a 4% interest rate for 10 years. How much more will be earned if the interest is compounded continuously, than if it is compounded monthly? A) $4,560 B) $50.31 * C) $9.92 D) $1.30 $526.70
Added by Timothy P.
Step 1
We can use the formula: FV = P(1 + r/n)^(nt) where: - FV is the future value - P is the principal (initial investment) - r is the annual interest rate (4%) - n is the number of times the interest is compounded per year (12 for monthly) - t is the number of years Show more…
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