Mathematics

Bugsy

19 January, 06:01

An investment banker is responsible for investing a customer's money into the greatest interest earning account. The banker has the following options for his customer's investment:

Account A:

interest rate = 8%

term of investment = 8 years

interest compounded annually Account B:

interest rate = 7%

term of investment = 10 years

interest compounding continuously

Which account, A or B, will earn the customer the greatest amount of interest on his $50,000 investment? In your final answer, include all of your calculations.