Where applicable, round your answer to the nearest cent and make sure to include

Question

Where applicable, round your answer to the nearest cent and make sure to include the dollar sign. Suppose that you have $7900 to invest which investment yields the greater return over 8 years: 9.45% compounded quarterly or 9.65% compounded semiannually? The accumulated value of the 9.45% investment is The accumulated value of the 9.65% investment is $16677.67 $16790.55 CONCLUSION The investment at 9.65 % compounded : $16790.55 yields a greater return. Note: You can earn partial credit on this problem Submit AnswersShow me another Preview My Answers You have attempted this problem 3 times Your overall recorded score is 75%. You have 21 attempts remaining Page generated at 03/10/2018 at 0144pm EST

Explanation / Answer

p = 7900

The accumulated value of the 9.45% investment = P(1 + r/4)4*t = 7900 * (1 + 0.0945/4)4*8 = 16677.67

The accumulated value of the 9.65% investment = P(1 + r/2)2*t = 7900 * (1 + 0.0965/4)2*8 = 16790.55

The investment at 9.65% compound 16790.55 yields a greater return.

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