at part "interval", like each year (once a year), quarterly (every 3 months), monthly,

or daily.

If the 6% is compounded annually, climate in 5 years, her $500 becomes 500 x (1.06)5 = $669.11 . (rounded)

Compounded quarterly, it"s $500 x (1.015)20 = $673.43

Compounded monthly, it"s $500 x (1.005)60 = $674.43

Compounded daily, it"s $500 x (1 + 0.06/365)1,825 = $674.91

(That critical one may be turn off by a tiny bit; ns don"t know what banks do through Leap Year.)


Wiki User

∙ 10y ago
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