So i got into a disagreement with ChatGPT about whether you earn more interest overall if you contribute daily rather than monthly, if the overall contribution over 1 year is the same.

I made CGPT write some python code to prove it. His code is on the left. I still didnt believe him so I wrote my own, on the right.

Our results seem to disagree, so Im asking you guys, if your interest is calculated daily and paid monthly, is it better to contribute $143 per day for 365 days, or $4349.58 monthly for 12 months?

  • @evujumenuk
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    21 year ago

    This is a good clarification. Indeed, ideally you’d want to put your money into that higher-interest vehicle as soon as possible, so basically, the same day you get paid.

    In the limit, if you were to receive income once a year, you’d put that into savings immediately, which is maybe on January 1st, or earlier or later, depending on when your actual payday really is.

    If you get a windfall, you’d also not want to let it linger on your current account for (next to) nothing, but put it to work as soon as is feasible.