You have $1200 to invest into the stock market. You have 2 choices to invest in, but you must invest all your money into whichever you choose. Option #1 pays you 2.5% interest,
compounded continuously. Option #2 pays you 3.1% interest, compounded semi-monthly.
You are going to invest for 7 years. Find the totals for each option and then decide which
option is the best choice and by how much.
Option 1 gives you
Option 2 gives you
Option
is the better choice because it gives you
more.