







Which compounding period will make the interest rate be as low as possible? 
20070327 

From lilly: if i decide to loan a friend 12000 and he said that he will pay it back in a single payment of 16000 after 5 years.
which compounding period will make the interest rate be as low as possible? daily or yearly?
how can i calculate each (yearly compound and daily compound)? Answered by Penny Nom. 





$20,000 at 25% compounded daily 
20040203 

From A student: Hi there, I'm tying to figure out how much interest I would pay on 20,000 if it was 25% compounded daily. Answered by Penny Nom. 





Compounding continuously 
20000321 

From Gina: You deposit $1500 in an account that pays 6.5% annual interest, compounded continuously. Find the balance after 10 years. I'm not sure what to do with the "compounded continuously" part. Answered by Penny Nom. 

