You invest $$15,000$ at an annual rate of $8\mathrm{.}25\%$ for one year. What is the difference in interest earned

if you invest this money on a monthly basis instead of an annual basis?

Answer: For the annual basis, the periodic rate is the same as the annual rate of $8\mathrm{.}25\%.$ With a PV of

$$15,000$ and APR of $8\mathrm{.}25\%,$ we have $1\mathrm{.}0825$ times PV equals $$16,237\mathrm{.}50,$ rendering an interest earned

of $$16,237\mathrm{.}50-$$$15,000=$$$1,237\mathrm{.}50.$ For the monthly basis, we have $\frac{C}{Y}=12,$ periodic interest rate $r=$

$0\mathrm{.}006875.$ Taking periodic rate $$