Hello, fw_mathis!

I'm not grasping the concept of how to solve for the different periods of time.

Formula: .

. .

We have: .1. Suppose you deposit $20,000 for 3 years at a rate of 8%.

We have: .(a) Calculate the return if the bank compounds quarterly

We have: .(b) Calculate the return if the bank compounds monthly .

We have: .(c) Calculate ther return if the bank compounds daily .

As the compounding becomes more frequent, the amount returned increases.(d) What observation can you make about the size of the increase in your return

as your compounding increases more frequently?

But thesizeof the increases is getting smaller.

. . From quarterly to monthly, the increase is:

. . From monthy to daily, the increase is:

Hope this helps . . .