Question: Follow the same steps to compare yearly, monthly, and daily compounding for a bank giving 20% interest. The procedure banks use to compute continuously compounded

Follow the same steps to compare yearly, monthly, and daily compounding for a bank giving 20% interest.
The procedure banks use to compute continuously compounded interest is similar to the process we used to derive a differential equation. Suppose several banks claim to be giving 5% annual interest and that you have $1000 to deposit.

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With yearly compounding youd get 120 1000 120000 ... View full answer

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