Answer:
We should invest in 7.74% compounded daily as it yields a higher return.
The total investment after 10 years is $10,841.22.
Step-by-step explanation:
a.) at 7.74% compounded daily
[tex]final = principal(1 + \frac{i}{m} )^{m \times n} \\ = 5000(1 + \frac{0.0774}{365} )^{365 \times 10} \\ = 10 \: 841.2235[/tex]
I assumed there are 365 days in a year.
b.) at 7.8% compounded quarterly
[tex]final = principal(1 + \frac{i}{m}) ^{m \times n} \\ = 5000 (1 + \frac{.078}{4} )^{4 \times 10} \\ = 10 \: 762.2505[/tex]
