Question

Determine the better investment: 5% compounded monthly or 5.2% compounded semiannually

Answer 1

It's like this, no?\[
\left(1+\frac{0.05}{12}\right)^{12}
\]\[
\left(1+\frac{0.05}{2}\right)^{2}
\]

Answer 2

so, which is better?

Answer 3

Put it in calculator.

Answer 4

I should have put: \[
\left(1+\frac{0.05}{12}\right)^{12} \\
\left(1+\frac{0.052}{2}\right)^{2}
\]