Question
You deposit $1000 at 2% for 20 years, compounded daily. What's the future value? (Remember, in this case your interest is going to be 0.02/365).
Answers
Henry
P = Po(1+r)^n
r = (2%/365)/100% = 0.00005479 = Daily
% rate expressed as a decimal.
n = 365Comp./yr * 20yrs. = 7300 Compounding periods.
P = !000(1.00005479)^7300 = $1491.76
r = (2%/365)/100% = 0.00005479 = Daily
% rate expressed as a decimal.
n = 365Comp./yr * 20yrs. = 7300 Compounding periods.
P = !000(1.00005479)^7300 = $1491.76