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

1 answer

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 =