SOLUTION: I have an investment of $50,000 for 30 years paying 6% annual interest rate. How much difference in the AMOUNT would there be if the account was compunded: Daily (n=365)????

Question 311517: I have an investment of $50,000 for 30 years paying 6% annual interest rate. How much difference in the AMOUNT would there be if the account was compunded:
Daily (n=365)????
Minutely (n=525,600)????
Thank you.
Answer by checkley77(12844) (Show Source): You can put this solution on YOUR website!
50,000(1+.06)^30
50,000*1.06^30
50,000*5.743=287,174.56 ANS.
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50,000(1+.06/365)^30*365
50,000(1.000164)^30*365
50,000(1.000164)^10,950
50,000*6.0432=301,170.26 ANS.
------------------------------
50,000(1+.06/525,600)^30*525,600
50,000(1.000000114)^30*525,600
50,000(1.000000114)^15,768,000
50,000*6.05=301,742.77
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