Exactly where is your difficulty?
. . You were sick for a week and missed all the lectures?
. . You don't know how to use those formulas?
. . You can't plug the stuff into your calculator?
(a) 7% compounded monthly for 10 years.Use the compound interest formulas: and
Suppose that you have $14,000 to invest.
Which investment yields the greater return over 10 years:
(a) 7% compounded monthly or (b)6.85% compounded continuously?
(b) 6.85% compounded continuously for 10 years.
Therefore, option (a) has the greater return.