since the 8.5% is annual interest, divide it by 365 for the daily rate. Then the interest will be the final balance less the original amount:
5000((1+.085/365)^13 - 1) = $15.16
If I invest 5,000 at a rate 8.5% for 13 days? How much interest will I earn on my investment if the interest is compounded daily?
I need help with setting up formula or help in general. Any help is appreciated.
2 answers
P = Po(1+r)^n.
r = 0.085/365 = 0.000233 = daily % rate.
n = 13 Compounding periods.
P = 5000(1+0.000233)^13 = $5015.17
Int. = P - Po = 5015.17 - 5000 = $15.17.
r = 0.085/365 = 0.000233 = daily % rate.
n = 13 Compounding periods.
P = 5000(1+0.000233)^13 = $5015.17
Int. = P - Po = 5015.17 - 5000 = $15.17.
1 answer