Kernel: Python 3 (system-wide)
Suppose that have a savings account with $1,000 that offers an annual interest rate of 3.3. Determine the value of the account of after 10 years if the interest rate is compounded:
monthly,
weekly,
hourly, and
by the second.
Conjecture what happens as the number of compounding per year increases.
In [4]:
In [6]:
1390.3382740533493
In [7]:
3736.645637648261
In [9]:
3.0057251328007694e+107
In [0]:
The more compounding per year seems to make the amount in the savings account increase exponentially. Which makes sense since the amount of compounding also increases exponentially