MATH people...continuous growth!!! THanks!?

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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!

MATH people...continuous growth!!! THanks!?auto financing

29. You just need to examine the growth parts of the compound interest formulas:

A= P(1 + r/n)^(nt) growth rate is (1 + r/n)^(nt)

-Bank A: 7% compounded daily, let t = 1 year

(1 + .07/365)^(365) = 1.0725

-Bank B: 7.1% compounded monthly

(1+ .071/12)^12 = 1.07336

and for continuous compounding

A = Pe^(rt) growth rate is e^(rt)

-Bank C: 7.05% compunded continuously

e^.0705 = 1.07304

best to worst: B,A, C

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

A = 875(1+.135/365)^(365*2)

A = $1146.16

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

A= Pe^(rt)

A = 1000 e^(.067 * 2)

A = $1146.39

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

A = 1050(1 + .045/12)^(12*2)

A = $1148. 69

b) rate of returns, compare the growth parts again (part multiplied to the principal)

Bank A: (1+.135/365)^(365*2) = 1.3099

Bank B: e^(.067 *2) = 1.1434

Bank C: (1 + .045/12)^(12*2) = 1.09399

best to worst: A, B, C

You can also see that Bank A was only 23 cents shy of Bank B after 2 years, but started with $125 less. So Bank A got better return. Bank C had about $2 more than the others after 2 years, but started with an extra $50