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**preview**shows half of the first page. to view the full**2 pages of the document.**Conceptual Homework 4B

1. Which is the better choice: $2500 deposited for a year: You must show your work below.

a. at a rate of 6.2% compounded quarterly?

b. at a rate of 5.2% compounded daily?

c. At a rate 4.2% compounded continuously?

a. A = P (1 + APR/n) ^ nY

A = 2500$ (1 + 0.062/4) ^ 4 x 1

= 2500$ x 1.0634564532200625

= $2,658.64113305015625

b. A = 2500$ (1 + 0.052/365) ^ 365 x 1

A = 2500$ x 1.0524

A = $2,631

C. A = P x e ^ (APR x Y)

A = 2500$ x e ^ (0.042 x 1)

A = 2500$ x 1.0428

A = $2607

The best work as shown by the results is a.

In there we get 2.658 $ which is the highest amount of interest for 1 year.

2. Decide whether the statement makes sense. Explain your reasoning.

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