Question

In which of the following scenarios would you have the most money at the end of the year? 3% compounded yearly 2% compounded monthly 2% compounded yearly 2% compounded weekly

Answer 1

Hi there
Let's assume that your initial deposite is 100 for 1 year
The formula is
A=p (1+r/k)^kt

Let's try each option to see which one is the most money at the end of the year
3% compounded yearly
A=100×(1+0.03)
=103
2% compounded monthly
100×(1+0.02÷12)^(12)
=102.018
2% compounded yearly
100×(1+0.02)
=102
2% compounded weekly
100×(1+0.02÷52)^(52)
=102.019

So it's A

Good luck!

Answer 2

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