document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=278143>Question 278143</A>: <I><SPAN STYLE=\"word-break: break-all;\"> <BR>\n" );
document.write( "Would you rather have a saving account that pays 5% interest compound semiannually or one that pays 5% interest compound daily? Explain. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #202429 by </B><A HREF=/tutors/aboutme.mpl?userid=checkley77><B>checkley77(12844)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=checkley77><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=202429\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Daily compounding pe^rt<BR>\n" );
document.write( "100*2.7182^.05*1<BR>\n" );
document.write( "100*1.05127=$105.13  amount of this investment after 1 year.<BR>\n" );
document.write( "Semiannual compounding p(1+r/2)^2t<BR>\n" );
document.write( "100(1+.05/2)^2*1<BR>\n" );
document.write( "100^1.025^2<BR>\n" );
document.write( "100*1.0506=$105.06 amount of this investment after 1 year.<BR>\n" );
document.write( "Therefore the daily compounding makes an extra $.07 0n $100 dollars per year. </SPAN>\n" );
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