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Math

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Find the amount of compound interest earned in an account that opens with $27,000, earns 5.8% interest compounded daily, and is held for 5 years. Assume 360 days in a year. (Round your answer to the nearest cent.)

  • Math - ,

    P = Po(1+r)^n.

    Po = $27,000.

    r = (5.8%/360) / 100% = 0.00016111 =
    Daily % rate expressed as a decimal.

    n = 360Comp./yr * 5yrs=1800 Compounding
    periods.

    Plug the above values into the given Eq
    and solve for P.

    P = $36,082.70.

    Int. = P - Po

  • Math - ,

    9082.70

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