Follow the same steps to compare yearly, monthly, and daily compounding for a bank giving 20% interest.

Question:

Follow the same steps to compare yearly, monthly, and daily 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.
Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...