Jordan's parents would like to invest some money to help pay his future college tuition. Their bank will pay interest on their investment at a nominal rate of 6 percent per year.
a) Assuming interest is compounded weekly, and Jordan's parents deposit 3000 dollars, how much money will be in the account after 15 years?
dollars

b) If their goal is to have 20000 dollars in the account in 15 years, what is the minimum amount of money Jordan's parents should deposit now, assuming that interest is compounded monthly?
dollars

c) Answer the same question in (b) if interest is compounded daily.
dollars

d) Did you find that they need to deposit more money if interest is compounded monthly or daily?

A. Monthly, because the growth factor is larger
B. Daily, because the growth factor is smaller
C. Daily, because we compound more frequently
D. Monthly, because the growth factor is smaller

Hint: