Ursula vanov can invest $5,000 in a 1-year cd at 3% compounded monthly or a 1-year cd compounded daily. determine the amount at maturity of each investment. what is the difference in the amounts?

Solving for the amount of maturity given that it is compounded monthly for 1 year with an interest of 3%, we have the formula and solution below:
A = P (1+r/n)^rn 
A = $5,000 (1.040417)
A =$5202.085

For compounded daily, we have the solution below:
A = $5,000 (1.040443)
A = $5202.215

The difference in amount is shown below:
Difference = $5202.215 - $5202.085
Difference = $0.13