Answer:
Continuous compounding makes .48 more
Step-by-step explanation:
Continuous Compound interest
A = Pe^(rt)
Where A is the amount in the account, P is the principal, r is the rate, t is the time
P = 1000
r = .06
t=1
A = 1000 e^(.06*1)
A =1061.84
The formula for compound interest is
A = P (1 + r/n) ^ (rt)
where A is the amount in the account , P is the principal, r is the rate, n is the number of times per year, t is the time
P = 1000
r = .06
n = 4 times per year
t=1
A = 1000 (1+.06/4) ^(4*1)
A = 1000(1.015)^4
A = 1061.36
The difference is
1061.84-1061.36 = .48
