Why does Greg not divide 4% by 3, but he times 3 years by 3 to get 9? I thought that was the Compound II rule in Prepswift.

So, shouldn’t the formula be: (x)((4/3)/100)^9?

Why does Greg not divide 4% by 3, but he times 3 years by 3 to get 9? I thought that was the Compound II rule in Prepswift.

So, shouldn’t the formula be: (x)((4/3)/100)^9?

This is not the typical compounding problem - in this case you are increasing by 4\% every four months. This is not “4% annual compounded every four months”.

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Thank you— that makes sense!