Question

If you deposit $10,000 at 5% with monthly compounding, what would your balance be at the end of nine months? What would the balance be if your interest compounds daily?

Answer 1

MONTHLY COMPOUNDING

Balance at the end of 9 months: $10,381.31

Month	Month Interest	Total Interest	Balance
1	$41.67	$41.67	$10,041.67
2	$41.84	$83.51	$10,083.51
3	$42.01	$125.52	$10,125.52
4	$42.19	$167.71	$10,167.71
5	$42.37	$210.08	$10,210.08
6	$42.54	$252.62	$10,252.62
7	$42.72	$295.34	$10,295.34
8	$42.90	$338.24	$10,338.24
9	$43.08	$381.31	$10,381.31

DAILY COMPOUNDING

Balance at the end of 9 months: $10,382.09

Month	Month Interest	Total Interest	Balance
1	$41.75	$41.75	$10,041.75
2	$41.93	$83.68	$10,083.68
3	$42.10	$125.78	$10,125.78
4	$42.28	$168.05	$10,168.05
5	$42.45	$210.50	$10,210.50
6	$42.63	$253.13	$10,253.13
7	$42.81	$295.94	$10,295.94
8	$42.99	$338.93	$10,338.93
9	$43.17	$382.09	$10,382.09