a different formula that is derived from the formula we've been using.$)$ Let's take a look at daily compounding.

To calculate the compound amount, $A,$ of an investment with daily compounding, use the compound interest formula modified as follows:

Rate per period $($daily$)=\frac{i}{365}($nominal interest rate, $i,$ divided by $365)$

Number of periods $($days$),n,=$ number of days of the investment.

$A=P(1+\frac{i}{365}{)}^n$

Calculator Sequence: $(1+(i365))y^{x}nP=A.($Round your answers to the nearest cent.$)$

$

$($b$)$ Using daily compounding, calculate the compound amount $($in $ $)$ of a $$6,000$ investment for each of the three CDs$.$

The First National Bank is offering a $5$ year CD at $3\%$ interest.

The Second National Bank is offering a $5$ year CD at $4\%$ interest.

The Third National Bank has a $5$ year CD at $4\mathrm{.}5\%$ interest.

First National Bank $

Second National Bank $

Third National Bank $