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Home > PC > Chapter 8 > Lesson 8.2.2 > Problem 8-88


Congratulations! Your rich old Uncle Lew has bestowed upon you. The only problem is that in order to receive the money, you have to decide which account is more beneficial to place the money in over the course of one year. If you choose correctly, you get to keep the money as a part of your college education. If you choose incorrectly, the money goes to help needy children get through their math courses. The choice of accounts is compounded quarterly or compounded continuously. Which account would be the most beneficial if you left the money in it for one year?  

Compounded quarterly: 

Continuously compounded: