What does Compounded quarterly mean to do and 3-5 mean?
In this scenario you have $5000 to invest and you want to know which of the following investment situations will give you the most money at the end of 5 years. The interest rate for all the situations is 6%. *MAKE SURE YOU PUT YOUR EXPONENTS IN PARENTHESES!
3.Calculate the investment if it is compounded quarterly (four times a year).
4.Calculate the investment if it is compounded monthly(12 times a year).
5.Calculate the investment if it is compounded daily(365 times a year).
Also since one of them is compounded quarterly , I think the equation is 5000(1.015)^4
because 0.06/4 is 0.015 and plus 1=1.015?
idk if this is correct since it says 4 times a year?? and the others I have no idea! please explain!