Math Problem Statement
Decide which of the two plans will provide a better yield. Plan A: $46 comma 000 invested for 2 years at 1.5%, compounded quarterly Plan B: $46 comma 000 invested for 2 years at 1.4%, compounded continuously
Solution
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Math Problem Analysis
Mathematical Concepts
Compound Interest
Continuous Compounding
Exponential Growth
Formulas
Compound interest formula: A = P(1 + r/n)^(nt)
Continuous compounding formula: A = Pe^(rt)
Theorems
Exponential Growth in Compounded Interest
Suitable Grade Level
Grades 10-12
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