Suppose you invest $1,000 in each of two institutions for a full year. Both pay 5% interest, but the first compounds quarterly and the second compounds annually. What would be the difference in the interest gained between the two institutions?

Question

anonymous · Answer

P(r/n)^nt where n is number compounded, r the rate, and t the time

anonymous · Answer

these are the answer
a.$ 0.95 
.b.$ 0.36

anonymous · Answer

just plug in and find the difference

anonymous · Answer

so would it be a?

anonymous · Answer

i didnt do the math yet, but if thats wut u get then yes

anonymous · Answer

oh ok:)