SOLUTION: sean plans to invest $10,000 in a savings account that pays 1.5% compounded quarterly. His friend suggests that he invest in an account paying the same interest rate but that pays
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Question 1010987: sean plans to invest $10,000 in a savings account that pays 1.5% compounded quarterly. His friend suggests that he invest in an account paying the same interest rate but that pays interest compounded monthly. How much more interest
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
10,000(1+0.015)^4 = 10,613.64
vs.
10,000(1+0.015)^12 = 11,956.18
Subtract one from the other and you have how much more you make through monthly compounding
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