Assume you have $1,000 and find a place to invest it that will give you 5% compounded annually.
a. How long will it take your investment to be worth $1,500?
b. Is it worth your while to run around and find another place which will give you 5% interest compounded daily? Explain your answer.
1000(1.05)^n = 1500
1.05^n = 1.5
n log 1.05 =log 1.5
n = 8.3 years
The more frequent the compounding, the more the return ,
yes, shop around