Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 52

As an incentive to attract savings deposits, most financial institutions today offer daily and even continuous compounding. This means that savings, or passbook, accounts, as well as CD's, earn interest compounded each day or even more frequently, such as every hour or even every minute.(Continuous compounding, in which compounding occurs every instant, involves a different formula that is derived from the formula we've been using.) Let's take a look at daily compounding.
To calculate the compound amount, A, of an investment with daily compounding, use the compound interest formula modified as follows:

a. On April 19, Thomas Ash deposited $2,700 in a passbook savings account at 3.5% interest compounded daily. what is the Compound amount of his account on August 5
b. Using daily compounding, recalculate the compound amount for each of three certificates of deposit in Exercise 32.