Post a New Question

posted by Kay on Monday, August 6, 2012 at 2:18pm.

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.)

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

9082.70

More Related Questions