Question
compound interest earned in an account that opens with $28,000, earns 2.4% interest compounded daily, and is held for 10 years. Assume 360 days in a year
Answers
Henry
P = Po(1+r)^n.
P = Principal after 10 years.
Po = $28,000 = Inital deposit.
r = (2.4%)/360) / 100% = 0.00006667. =
Daily % rate expressed as a decimal.
n = 360Comp/yr * 10yrs=3600 Compounding periods.
Plug the above values into the given Eq
and get:
P = $35,594.69.
I = P-Po =
P = Principal after 10 years.
Po = $28,000 = Inital deposit.
r = (2.4%)/360) / 100% = 0.00006667. =
Daily % rate expressed as a decimal.
n = 360Comp/yr * 10yrs=3600 Compounding periods.
Plug the above values into the given Eq
and get:
P = $35,594.69.
I = P-Po =