Continuous growth in math...please help!?

Ok,

so these two I%26#039;m confused on too...it%26#039;s for a PRE-test so it%26#039;s worth really nothing

29. Rank the following three bank deposit options from best to worst.

-Bank A: 7% compounded daily

-Bank B: 7.1% compounded monthly

-Bank C: 7.05% compunded continuously

LASTLY

28.

Three different investments:

a) Find the balance of each of the investments after the 2 year period.

b) rank them from best to worst in terms of rate of return. (PLEASE EXPLAIN WHY ALSO!!!...thanks!)

-A. $875 deposited at 13.5% per year compounded daily for 2 yrs.

-B. $1000 deposited at 6.7% per year compounded continuously for 2 years.

-C. $1050 deposited @ 4.5% per year compounded monthly for 2 yrs.

Please show all work so that i understand it. Thanks!

Continuous growth in math...please help!?interest rate

29. You have to convert all these to a yearly rate.

A. (1+0.07/365)^365=1.072500983

B (1+0.071/12)^12=1.073356638

C e^0.07=1.072508181

So A%26lt;C%26lt;B

28. A 875*(1+0.135/365)^730=1146.16

B 1000*e^(2*0.067)=1143.39282

C 1050*(1+0.045/12)^24=1148.689623

Rate of return C%26lt;B%26lt;A

Continuous growth in math...please help!?

loan

You should always try to post separate questions to make it simpler. I%26#039;ll answer the first one tonite (It%26#039;s late), but you can always post the second par later. Use a calculator (check link) to obtain the answers. In your case, if you invest 10,000 for one year you get:

a) 10,725.01

b) 10,733.57

c) 10,730.45

The best is b, followed by a.|||Balances of every $1.00 deposit after 1 year and 2 years:

Bank A (Based on 365 days a year):

= $1.00(1 + [0.07/360])^360

= $1.072500983171130 after 1 year

= $1.150258358903050 after 2 years

Bank B:

= $1.00(1 + [0.071/12])^12

= $1.073356638104140 after 1 year

= $1.152094472562210 after 2 years

Bank C: I don%26#039;t understand the adverb continuously. You can observe that the computation of banks A and B are also continuous.

If for 1 year Bank B has the higher return but after 2 years Bank A has the higher yield than Bank B.

鈥擜. = $875.00(1 + [0.135/365])^730 or $1,146.16

鈥擝. = I don%26#039;t understand the verb modifier %26quot;continuously%26quot;.

鈥擟. = $1,050.00(1 + [0.045/12])^24 or $1,148.69

I think 鈥擜 is the best inasmuch as the rate is higher and the computation of interest is more frequent than 鈥擟. It is true that the balance in 鈥擟 after 2 years is higher. This is because the principal which is the basis for the interest computation is larger in 鈥擟 than in 鈥擜. Things being equal the higher the rate of interest and the more frequent the computation is more advantageuous than the other. I would still go for 鈥擜.