Homework Help: Finance

Posted by diamond on Wednesday, August 1, 2012 at 9:38pm.

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

Finance - Henry, Thursday, August 2, 2012 at 7:39pm
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 =

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