Final answer:
To find out which rate would yield a larger amount in 1 year, we can use the formula for compound interest.
Step-by-step explanation:
To find out which rate would yield a larger amount in 1 year, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the principal amount (initial deposit)
r = the annual interest rate
n = the number of times interest is compounded per year
t = the number of years
For the first rate of 15% compounded quarterly:
A = 100(1 + 0.15/4)^(4*1)
A ≈ 100(1.0375)^4 ≈ $115.51
For the second rate of 14.8% compounded daily:
A = 100(1 + 0.148/365)^(365*1)
A ≈ 100(1.0004)^365 ≈ $115.63
Therefore, the rate of 14.8% compounded daily would yield a larger amount in 1 year.