Question 981587: how much interest would i earn if I invested 3000 for 5 years into a saving account with a intrest rate of 0.35
then compare at 3 different compounding periods monthly daily continuously
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! A=Ao{1+r/n)^nt, where n is the number of compounding periods per year.
Look at {1+r/n}^nt
For monthly, (1+(.35/12)^60, since 60 months in 5 years.
That is 5.6123, and the total is 3000* that, or $16,836.97
For daily, (1+(.35/365)}^1825, or 5.7498, and total is $17,249.34
For continuously
A=Aoe^.35*5=3000*e^1.75=$17263.81
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