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Finance

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Find the amount of compound interest earned in an account that opens with $24,000, earns 7.8% interest compounded daily, and is held for 20 years. Assume 360 days in a year. (Round your answer to the nearest cent.)

  • Finance -

    P = Po(1+r)^n.

    Po = $24,000.

    r = (7.8%/360) / 100% = 0.00021667 = Daily % rate expressed as a decimal.

    n = 360Comp./yr * 20 yrs = 7200 Compounding periods.

    Plug the above values into the given Eg.
    P = 114,192.41
    Int. = P - Po

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