Solve the problem.Suppose that you have $8000 to invest. Which investment yields the greater return over 10 years: 6.25% compounded continuously or 6.3% compounded semiannually?

A. $8000 invested at 6.25% compounded continuously over 10 years yields the greater return.
B. $8000 invested at 6.3% compounded semiannually over 10 years yields the greater return.
C. Both investment plans yield the same return.


Answer: A

Mathematics

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Mathematics