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OpenStudy (anonymous):
Which investment is better? Investment A: 6% compounded semi annually? Investment B: 4.5% compounded quarterly?
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OpenStudy (anthonyym):
Do you know the formula?
OpenStudy (anonymous):
A=P(1+i)^n
OpenStudy (anthonyym):
Yeah, and I would assume your i represents rate/number of times interest compound per year?
OpenStudy (anthonyym):
Because I have this formula: http://www.openbookproject.net/books/bpp4awd/_images/compound_interest.png
OpenStudy (anonymous):
I got it. Thank you
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OpenStudy (anthonyym):
Ok so you understand the process of pluggin the numbers in and comparing which gives the better deal?
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