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Calculating Return at Different Bank Compounds

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Suppose you deposit $10,000 dollars for 2 years at a rate of 10%. calculate the return (A) if the bank compounds annually (n = 1) Round your answer to the hundredth's place.

Now calculate the return (A) if the bank compounds quarterly (n=4).
Now calculate the return (A) if the bank compounds monthly (n=12).
Now calculate the return (A) if the bank compounds daily (n = 365 ).

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Solution Summary

This solution explains how to calculate the amount of money returned with different interest compounding periods, showing the general formula required and then applying it to the problem at hand. The solution has been presented in an attached Word document.

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