As an incentive to attract savings deposits, most financial institutions today offer daily and even continuous compounding. This means that savings, or passbook accounts, as well as certificates or deposit (CDs), earn interest compounded each day or even more frequently, such as every hour or even every minute. (Continuous compounding, in which compounding occurs every Instant Involves 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: 1 Rate per period (daily) (nominal interest rate, l, divided by 365) 365 Number of periods (days), n, - number of days of the investment A- 365 Cateulator Sequence (1 + (*365 ))" x P = A. (Round your answers to the nearest cent.) () on April 18, Thomas Ain deposited $2,000 in a passbook savings account at 3. Interest compounded daily. What is the compound amount (in =) of his account on August ? () Using daily compounding, calculate the compound amount (in)of an $8,000 investment for each of the three CD The First National Bank is offering a year CD at 4% Interest The Second National Bank is offering a 5 year CD at 3% interest The Third National Bank has a 5 year CD at 5.5% interest. First National Bank $ Second National Bank $ Third National Bank $