Find the future value of $1000 which was invested for:

a) 250 days at 10% compounded daily
Should I use 365 or 360 days to compound daily? Thanks in advance

365 : )

To find the future value of $1000 invested for 250 days at a 10% annual interest rate compounded daily, we can use the formula for compound interest:

Future Value = Principal * (1 + (Interest Rate / Number of Compounding Periods))^(Number of Compounding Periods * Time)

In this case, the Principal is $1000, the Interest Rate is 10% (or 0.10), the Number of Compounding Periods is the number of days in a year, and the Time is 250 days.

Now, regarding the number of days in a year, there are two options: 365 days or 360 days. Traditionally, the banking industry used 360 days for calculating interest. However, for more accurate calculations, you should use 365 days, as it better reflects the actual number of days in a year.

Therefore, for the most accurate calculation, it is recommended to use 365 days when compounding daily.