Cd Account Calculator

in terms of a CD account, my CD account is compounded daily and when I used this site ... http://www.bankrate.com/calculators/savi calculate how much money I have on the due date Ive noticed that the more money that when compounded daily, compounded annually.
So what is the difference?

There is a huge difference if we consider the end value. Essentially, they will be added daily interest instead of annually. The formula they use is v = p * (1 + r) ^ t. The p is known as the principle and the original amount you put in. V is the value at the end of time t and the number of periods of time passing. r is the interest rate you have to remember to fit the period that you are using. For example, a rate of 10% per year would be (10/12)% per month since 12 months ago by year. Therefore, r will be smaller but the T will be much greater than it is 12 times the number of periods of time passing. With the extra interest is added sooner you can earn more money faster than the interest period shall be applied to a larger amount of money. If you work at hand that will explain it clearly can be a bit difficult to work without a complete example.

Let's make this easy, say you do 365% per year while on a book or the dollar or whatever, you make 365 dollars per year, or $ 1 per day. But now afer your first day, your initial investment rose from $ 1 to 2 if your interest in the coming days will be 365% 2, and so on. I think that explains!
Compounded annually is less obvious that every day then. It is interesting to note that you can now do with mortgage companies instead of paying monhly you pay each week.