Justin’s dad suggests putting the $500 into a CD that earns more interest, more often. Their credit union currently offers 2.5 percent APY on a 12-month CD, and interest is compounded daily.
Justin uses the compound interest formula to see the difference it makes to have his money earn interest at a higher rate every day rather than just once a year. He discovers that he will have almost $513 after one year if he goes with the CD option.
Justin can increase his savings by compounding interest more often. What are at least two other ways he can grow his savings?