Future value investment

Poseidon deposited 2,747 golden drachmas in a Mount Olympus college savings account to ensure Percy can go to college. It pays 0.04 (percent in decimal form) annual interest. After 11 years, he withdraws the money. How much more money would he have if the interest was continuously compounded versus compounded quarterly?

Correct answer:

x =  -27.0951

Step-by-step explanation:

a=2747 t=11 n1=t=11 n2=t 4=11 4=44 r=0.04  x1=a (1+r)n1=2747 (1+0.04)114228.8803 x2=a (1+r/4)n2=2747 (1+0.04/4)444255.9754  x=x1x2=4228.88034255.9754=27.0951

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