Homework Help: Math

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.)

Math - Henry, Wednesday, August 8, 2012 at 12:30pm
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 - Anonymous, Monday, December 17, 2012 at 2:41pm
9082.70

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