A bank representative studies compound interest, so she can better serve customers. She analyzes what happens when $2,000 earns interest several different ways at a rate of 4% for 3 years.
a. Find the interest if it is computed using simple interest.
b. Find the interest if it is compounded annually.
c. Find the interest if it is compounded semiannually.
d. Find the interest if it is compounded quarterly.
e. Find the interest if it is compounded monthly.
f. Find the interest if it is compounded daily.
g. Find the interest if it is compounded hourly.
h. Find the interest if it is compounded every minute.
i. Find the interest if it is compounded continuously.
j. What is the difference in interest between simple interest and interest compounded continuously?