Ace invests his big bucks ($5000) in an account that earns 5% annually, compounded quarterly. How much would he earn in 1 year, if the account were compounded daily?
recall the compound interest formula.
Here is the amount after time , is the principal (the original amount), is the interest rate (written as a decimal), is the number of times per unit time the principal is compounded, in this case, the number of times per year
Just plug in and solve for A. then subtract the original amount from it to find how much was earned