Question 1163100
What is the difference between investing $4,000 for two years at 7% compound
interest computed semi-annually or invest them at 5% computed compound
interest quarterly basis?
<pre>
They always say, "Go by the higher interest rate, not the frequency of
compounding". Let's see if "they" are right:

{{{A=P(1+r/n)^(nt)}}}

{{{A=4000(1+0.07/2)^(2*2)="$4590.09"}}}

{{{A=4000(1+0.05/4)^(4*2)= "$4417.94"}}}

Looks like "they" are.

Edwin</pre>