SOLUTION: How much more does $1000 earn in eight years, compounded daily at 5% than $1000 over eight years at 5% compounded semiannually

SOLUTION: How much more does $1000 earn in eight years, compounded daily at 5% than $1000 over eight years at 5% compounded semiannually

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Question 1070576: How much more does $1000 earn in eight years, compounded daily at 5% than $1000 over eight years at 5% compounded semiannually
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
Daily: A=5000(1+(.05/365)^8*365=$7458.92, rounding at the end. We are raising to the 2920 power.
Semi-annual: A=5000(1+0.025)^16=$7422.53
That is a difference of $36.39
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