which is a better choice: $1000 deposited for a year at a rate of 5.5% compounded monthly or at a rate of 5.4% compounded daily
We need to copmare these two things :
1000(1 + .055/12)12 ≈ $ 1056.41
And
1000(1 + .054/365)365 = $1055.48
Looks like the monthly rate is slightly better....
5.5
