+0  
 
0
1693
1
avatar

how much more does 1000 earn in eight years compounded daily at 5% than $1000 over eight years at 5% compounded semiannually?

 Nov 14, 2014

Best Answer 

 #1
avatar+118723 
+5

compounded daily it will grow to

1000(1+0.05/365)^(365*8)

 

compounded 6 monthly it will grow to 

1000(1+0.05/2)^(2*8)

 

you can do the rest   

 Nov 15, 2014
 #1
avatar+118723 
+5
Best Answer

compounded daily it will grow to

1000(1+0.05/365)^(365*8)

 

compounded 6 monthly it will grow to 

1000(1+0.05/2)^(2*8)

 

you can do the rest   

Melody Nov 15, 2014

1 Online Users