Determine the interest earned of a 23-year investment with an interest rate of 2.8% compounded daily, if the future value is $44800
A) 21271.02 B) 208.60 C) 20955.11 D) 8668.80
P = Po(1+r)^n.
r = 0.028/365days = 7.67*10^-5/day.
n = 365Comp./yr. * 23yrs. = 8395 Compounding periods.
44,800 = Po(1.0000767)^8395,
Po = $23,529.44 = Initial investment.
I = P-Po.