Conceptual Homework 4B 1) Which is the better choice: $1000 deposited for a year: You must show your work below

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Conceptual Homework 4B

1) Which is the better choice: $1000 deposited for a year: You must show your work below.

1. 1. at a rate of 5.5% compounded monthly?
   2. at a rate of 5.4% compounded daily?
   3. At a rate 4.5% compounded continuously?

2. Decide whether the statement makes sense. Explain your reasoning.

Raul is planning to invest his money for one year only. He chose an account paying simple interest at 6% per year which was clearly a better deal than an account paying a 5.6% APR with interest compounded annually.