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P Take a Test Alexis Gregory Google Chrome https://www.mathxl.com/Student/Player Test aspx?testld-142952845&centerwin; yes Fall 16 College Algebra Trigsted 3e (1) Quiz: Quiz 4 (5.1-5.5) This Question: 1 pt 3 of 20 (2 complete) Suppose that you have $6,000 to invest. Which investment yields the greater return over a 10 year period 7.13% compounded daily or 7.2% compounded quarterly? Find the total amount of the investment after 10 years if$6,000 is invested at 7.13% compounded daily. s Round to the nearest cent as needed Find the total amount of the investment after 10 years if$6.000 is invested at 7.2% compounded quarterly s Round to the nearest cent as needed.) Which investment yields the greater return over a 10 year period? O 7.2% com quarterly pounded O 7.13% compounded daily Click to select your answer(s)

Solution

Compunded daily:

A = P( 1 +r/365)^(365*n)

= 6000( 1+ 0.0713/365)^(365*10)

= $ 12239.76

Compounded quarterly :

A = P( 1+r/4)^(n*4)

= 6000( 1+0.072/4)^40

= $12247.92

Out of two investement at 7.2% compounded quarterly yeilds more