Added: 3 months ago
From: khanacademy
Views: 3,199
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  • this is algebra, college algebra math 1111

  • I tried to compare what would be cheapest: Compounding once a year, once a month or once a day. It turned out that the less often you compound, the cheaper your loan becomes. Can you explain that so it makes sense intuitively?

    Here are the calculations and results:

    4000*(1 + (0.03/1))^(1*5) = 4637.0962972000

    4000*(1 + (0.03/12))^(12*5) = 4646.4671262211

    4000*(1 + (0.03/365))^(365*5) = 4647.3083246046

  • in england (UK) what level of education would this be on? GCSE or A level?

  • @PSPhacking2009 I'm not from England, but from a few Google searches, I'd say GCSE.

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