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Return on Deposit

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Suppose you deposit $10,000 for 2 years at a rate of 10%. Calculate the return (A) if the bank compounds quarterly (n=4). Round your answer to the hundredth's place.

Now calculate the return (A) if the bank compounds monthly (n=12).

Now calculate the return (A) if the bank compounds daily (n=365)

Show all your work.

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The general formula for compounded interest over 2 years, given the starting deposit of $10,000 and rate 10% is

A = $10,000 * [ (1+ ...

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