Wendy williams can invest $10,000 in a 1-year cd at 4.5% compounded quarterly or a 1-year cd compounded daily. determine the amount at maturity of each investment. what is the difference in the amounts?

We can use the formula below in solving the unknown which is the amount at maturity. In the problem, we can use this formula where V is the missing value V = P(1+r/n)^(nt)
For compounded quarterly, the solution is shown below:
V = $10,000 (1 + 4.5%/4) ^(4*1)
V = 10,000 (1.01125)^4
V = $10,457.65

For compounded daily, we have:
V = 10,000 (1.056025)
V = $10,560.25

The difference can be computed same below:
Difference = $10,560.25 - $10,457.65
Difference = $102.6