and BRAINLIEST IF CORRECT 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.

The more often an interest rate is compounded, the better the return it provides. Continuous compounding at 4.9% would give a better return than monthly compounding at the same rate. Monthly compounding at 4.9% would give a better return than monthly compounding at 4.8%.

Account B will earn the customer the greatest amount of interest.

The question is a qualitative one; no calculations are necessary. One simply needs to observe that 4.9 > 4.8.

(If the numbers were reversed, monthly compounding at 4.9% would give a better return than continuous compounding at 4.8%. A calculation is needed in order to come to that conclusion.)

Step-by-step explanation:

SEE ANSWER BELOW

Step-by-step explanation:

A. (formula A=P(1+r/n)^nt

P=50,000(1+.08/1)^nt

P=50,000(1+.08)^nt

P=50,000(1.08)^nt

P=50,000 • 1.85

P=92,546.5

B. (formula A=Pe^rt

P=50,000e7 • 10

P=50,000 • 7

P=50,00 •2 .013

P=100689.64

B saves more

10000000000000000000000000000000