Homework Answers
3)a )
10,000 at 6% compunded daily
A = 10000 ( 1 + .06/365 )^365 t
10,000 at 6% compounded annually
A = 10000 ( 1 + .06 )^t
b) after 2 years
compunded daily = $ 11274.86
compounded annually = $ 11236
after 20 years
compounded daily = $ 33197.90
compounded annually = $ 32071.36
c) as the lime period increases the investment of compounded daily increases more rapidly than compounded annually
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