Question: Do you know Grade 11 mix math? Please Help?

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Answer #1:

8.25 % compounded semi-annually for 7 years =
(1.04125)^14 = 1.76104398
Your money will grow by 76.10 %

8.0% compounded daily =
(1 + (.08/365))^(7*365) = 1.75056508
In this case your money grows by 75.06 %

So the first one, with the higher rate is better,
but not by much. (about $40 difference over 7 years).

More frequent compounding helps, but not by all that much.

I would pick the bank with better customer service or a more convenient location.





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