SOLUTION: A little confused on this question. Johnny invested $500 into a savings account that earns 2.3% interest. If he plans on leaving the money in the account for 10 years and has no in

Question 1192940: A little confused on this question. Johnny invested $500 into a savings account that earns 2.3% interest. If he plans on leaving the money in the account for 10 years and has no intention of adding or withdrawing from it, should he choose the account that is compouneded annually or daily?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
the more times the money is compounded the better. Choose daily compounding.
annually it would be P=500(1.023)^10=$627.66
daily is P=500(1+.023/365)^3650=$629.30, slightly better.
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