Question: I'm using the formula A=P(1+r/n)^nt to calculate compounding interest. P = initial balance, r=interest rate, t=years, n=how many times compounded yearly Why am I getting

I'm using the formula A=P(1+r/n)^nt to calculate compounding interest. P = initial balance, r=interest rate, t=years, n=how many times compounded yearly

Why am I getting a higher answer when I calculate an interest rate at a yearly rate rather than compounding quarterly? For example, A=1000(1+0.3/1)^1x1 is $1030 for the year. If compounded quarterly, A=1000(1+0.3/4)^4x1, then I get $1007.50. Is that result only for the first quarter? I'm confused.

Thank you.

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