Please Help!
You have $3000 to invest. Which investment yields the greater return over a 10 year period: 8.02% compounded daily, or 8.1% compounded quarterly? a) Find the daily compound. b) Find the quarterly compound. c) Which is worth more money?

Question

Please Help!
You have $3000 to invest. Which investment yields the greater return over a 10 year period: 8.02% compounded daily, or 8.1% compounded quarterly? a) Find the daily compound.  b) Find the quarterly compound.  c) Which is worth more money?

anonymous · Answer

@haleyelizabeth2017

anonymous · Answer

@confluxepic

anonymous · Answer

@AMYCARTER

haleyelizabeth2017 · Answer

I am not sure on this one....sorry!

anonymous · Answer

ok thanks for trying :) Amy do you know how?

anonymous · Answer

hmmm i don't sorry but I'm guessing B or C but idk just going with what my gut is telling me lol

anonymous · Answer

oh it's not multiple choice, you have to figure a b and c sadly:(

anonymous · Answer

@confluxepic youre my only hope

confluxepic · Answer

I hate to be so good at math.

confluxepic · Answer

There's a formula.

anonymous · Answer

Do you know the formula?

confluxepic · Answer

$$A=P(1+\frac{ r }{ n })^{nt}$$

anonymous · Answer

is that the formula for daily or quarterly or both?

confluxepic · Answer

That's the compound interest formula.

anonymous · Answer

ok so i know i have to plug in the numbers, but which one go where?

confluxepic · Answer

A = amount of money accumulated after n years, including interest.
P = principal amount (the initial amount you borrow or deposit)
r  = annual rate of interest (as a decimal)
n  =  number of times the interest is compounded per year 
t  = number of years the amount is deposited or borrowed for.

anonymous · Answer

ok so i need to solve for a?

confluxepic · Answer

Yes.

anonymous · Answer

and p would be 3000?

confluxepic · Answer

Exactly.

anonymous · Answer

So I have A=3000(1+8.02/365)^3650

haleyelizabeth2017 · Answer

3650?

confluxepic · Answer

@Lucinda12345 
r  = annual rate of interest (as a decimal)
It says annual.

anonymous · Answer

it says daily, so i assumed 365 so it is actaully 1 *10?

confluxepic · Answer

I think you have to multiply it by 365. I'm not sure.

anonymous · Answer

so it is 3650?

confluxepic · Answer

The question says: 8.02% compounded daily, or 8.1% compounded quarterly.

anonymous · Answer

yes, so i am doing the 8.02 now, and then the 8.1 to figure out how much each is worth, and which one is worth more.

anonymous · Answer

are you there @confluexepic?

confluxepic · Answer

@TheSmartOne

anonymous · Answer

Is @TheSmartOne coming?

anonymous · Answer

Are you there @TheSmartOne