Question: Review the compound interest formulas for n compoundings per year and for continuous compounding we learned this week. Do a quick check of the various

Review the compound interest formulas for n compoundings per year and for continuous compounding we learned this week. Do a quick check of the various interest offering from your favorite bank and then design a saving plan that would give you the most satisfactory savings in at the end of 2030 if you have only 5 extra dollars to be put away every day?

Summary of Compound Interest Formulas Let P be the amount deposited, t

Summary of Compound Interest Formulas Let P be the amount deposited, t the number of years, A the balance, and r the annual interest rate (in decimal form). nt 1. Compounded n times per year: A = P1 + - 2. Compounded continuously: A = Pe" In general, the effective rate corresponding to a nominal rate of r that is compounded n times per year is (1 + 2) -1. 1) = n Effective rate = reff - 1. %3D n

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