Find the amount of compound interest earned in an account that opens with $29,000, earns 7.5% interest compounded daily, and is held for 5 years. Assume 360 days in a year. (Round your answer to the nearest cent.)

Answer 1

P = Po(1+r)^n.

r = (7.5%/360) / 100% = 0.000208333333
= Daily % rate expressed as a decimal.

n = 360Comp./yr * 5yrs = 1800 Compounding periods.

Solve the given Eq using the above values.

Int. = P - Po