Question 491898
You are very close, you set up the formula correctly, however, i think you just forgot a zero in the (.075) part.
--> 0.03/4 = 0.0075
--> FV = 100(1+.0075)^960 = 130,392.50
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For part B) mainly the idea is the more you compound it, the more you will earn within the same time period. If you earn interest every month, then you are able to reinvest that interest monthly. If you earn daily, then you reinvest daily and over say a year you would have earned more total interest than had you earned monthly interest.
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For part C), go to the "Y =" button and enter the above function for FV from part A) but instead of putting 960, put 4x, then you can see the yearly progress. Then push the "Graph" button...if you look where x=240, y should be about 130,000.
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