Instructions

Recall that the formula for compound interest is

$A=P\{1+\frac{r}{m}{\}}^{mt}$ where $P$ is principal, $A$ is amount, $r$ is the annual rate, $m$ is the number of compounding periods, and $t$ is the number of years. Using this formula determine the amount $($A$)$ of money for each different compounding period.

Case $3-$ Find Amount when compounding periods change

Calculate the effect on Amount using the information in the table below:

$\backslash$table$[[\backslash$table$[[$P$],[($Principal$)]],\backslash$table$[[r($annual$],[$rate$)]],\backslash$table$[[$Compounded$],[$rate$]],\backslash$table$[[$M $($number of$],[$compounding periods$)]],\backslash$table$[[$t $($number of$],[$years$)]],\backslash$table$[[$A$],[($amount$)]]],[$$$5000,8\%,$Annually,$1,1,],[$$$5000,8\%,$Quarterly,$4,1,],[$$$5000,8\%,$Monthly,$12,1,],[$$$5000,8\%,$Daily,$365,1,]]$