Question

Find the amount of compound interest earned in an account that opens with $21,000, earns 4.2% interest compounded daily, and is held for 5 years. Assume 360 days in a year.

Answer 1

i = .042/360 = .0001166667
n = 5(360) = 1800

amount = 21000(1.000116667)^1800
= 25906.92