Essay
If $100 is invested at a rate of 5% compounded continuously,the amount in the account is given by:
If the same principal is invested at an account earning 5% compounded semiannually,the amount is given by:
Consider the difference in these two investments by graphing both functions on your graphing calculator and looking at the years 5 through 7.(Use the window
×
.)What do you notice about the two graphs?
Correct Answer:
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The amount in the continuously...
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