Big Stan has a choice of two different investment options. The first is to invest $13354 at 7% compounded continuously. The second is to invest $17217 at 7% com

Question

Big Stan has a choice of two different investment options. The first is to invest $13354 at 7% compounded continuously. The second is to invest $17217 at 7% compounded monthly. After 1 years, write down the economic value of the larger amount of the two.

Answer 1

Compounded continuously : A = Pe^rt= 13354*e^0.07*1= 14,322,27

Compounded monthly:  A = P (1+r/n)^nt = 17217 ( 1+ 0.07/12) ^12*1= 18461.62