Given Information:
Annual interest rate = r = 12%
Principal amount = P = $1000
Number of years = t = 3
Required Information
Accumulated amount = A = ?
Answer:
Annual compounding = A = $1404.93
Semi-annuall compounding = A = $1418.52
Quarterly compounding = A = $1425.76
Monthly compounding = A = $1432.30
Daily compounding = A = $1433.14
Step-by-step explanation:
The accumulated amounts in terms of compound interest is given by

Where P is the initial amount invested and A is the accumulated amount.
For annual compounding:
i = 0.12
N = 3

For semiannually compounding:
i = 0.12/2 = 0.06
N = 2*3 = 6

For quarerterly compounding:
i = 0.12/4 = 0.03
N = 4*3 = 12

For monthly compounding:
i = 0.12/30 = 0.004
N = 30*3 = 90

For daily compounding:
i = 0.12/365 = 0.0003287
N = 365*3 = 1095
