A Both investment plans yield the same return B 11000 invest

A. Both investment plans yield the same return.

B. $11,000 invested at 6.3% compounded semiannually over 10 years yields the greater return.

C. $11,000 invested at 6.25% compounded continuously over 10 years yields the greater return.

money invested = $ 11000

time = 10 years

rate = 6.25%

finding return when compounded continuously

A = P e^rt

A = 11,000 e ^ (.0625*10)

A = $ 20,550.71

now calculating compunded semiannually

A = P ( 1 + r / n ) ^ nt

n = 2 for semiannually

A = 11,000 ( 1 + 0.063 /2 ) ^ 2*10

A = $ 20, 453.96

therefore, amount invested in comounded continuously yields greater return