Question

which is a better investment 12%compounded quarterly or12. 2% p. a. compounded continuously.
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Answer 1

Answer:

Any interest or return is usually quoted per annum and the frequency of compunding / payout will be specified.

So, both p.a compounded monthly & compounded monthly are the same. Net effect of 12% monthly compounding will come to 12.68%

There is a formula to calculate the same.

FV = P (1 + r / n)Yn

where P is the starting principal, r is the annual interest rate, Y is the number of years invested, and n is the number of compounding periods per year. FV is the future value, meaning the amount the principal grows to after Y years.

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Answer 2

Answer:

I hope it's answer help you