Question

Which investment is better? Investment A: 6% compounded semi annually?
Investment B: 4.5% compounded quarterly?

Answer 1

Do you know the formula?

Answer 2

A=P(1+i)^n

Answer 3

Yeah, and I would assume your i represents rate/number of times interest compound per year?

Answer 4

Because I have this formula: http://www.openbookproject.net/books/bpp4awd/_images/compound_interest.png

Answer 5

I got it. Thank you

Answer 6

Ok so you understand the process of pluggin the numbers in and comparing which gives the better deal?