Question

Ok, teacher, I get that when I have bacteria growing at 6% per day, the
formula I use is 1.06x
. And I get that if I want to figure out the bacteria
growth in 2 hours, I use 1.062/24, because two hours is 2/24ths of a day.
What I don't get is why I can't use the same idea for money. If I have
money growing at 6% per year, I can use 1.06x
, but if it's compounded
monthly, I can't just put in 1.062/12 to figure out two months. I have to use
(1 + .!"
!")
!"∗ !
!!. Why is it different and how do I know when to use which?