What is the absolute value of -7?
1/7
-1/7
-7
7

Principal amount = P = $1500
Time in years = t =10
For annual compounding, interest rate = r = 3% = 0.03
Amount accumulated = A 

Formula for Annual(Yearly) compounding is:



Using the values, we get:



Interest rate for continuous compounding = r = 2% = 0.02

Formula for continuous compounding is:



Using the values, we get:



This means amount accumulated by yearly compounding after 10 years will be $ 2015.87 and amount accumulated by continuous compounding will be $ 1832.40. Therefore the amount with yearly compounding will have more amount by the end of 10th year. The difference in the two amounts will be $183.47. So the yearly compounding will have saved $183.47 more than continuous compounding.