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.
Directions:
Justin can increase his savings by compounding interest more often. What are at least two other ways he can grow his savings?