Question

Suppose that you have $6,000 to invest. Which investment yields the greater return over a 10 year period: 7.44% compounded daily or 7.5% compounded quarterly? Find the total amount of the investment after 10 years if $6,000 is invested at 7.44% compounded daily. $ (Round to the nearest cent as needed.) help me please im failing ​

Answer 1

Hi
Here is you answer mate
But don’t forget to mark me the brainliest


Plug the applicable numbers into the compound interest formula and see which is more.
A = p(1+r/n)nt
A = future amount
p =principal investment
r = interest rate as a decimal
n = number times compounded per year
t = time in years

A = 5000(1+.0743/365)365(10)
= 5000(1.000203562)3650 = $10,510.38

A = 5000(1+.075/4)4(10)
= 5000(1.01875)40 = $10,511.75

As you can see these are practically equal, but the 7.5% quarterly is more.