Homework Answers
Plan one is better investment since interest continuously compounded it means every day interest on principal added to principal then again and again interest on interest will accrue it will continue over a period of time (loan or investment period)
Under option 2 interest compounded quarterly it means every quarter interest will be added to principal it will continue over
period of time
So interest will be more at the end of maturity period automatically investment value also more under plan one than plan two.
Conclusion: plan one is better investment.
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