Find the amount of compound interest earned in an account that opens with $29,000, earns 2.8% interest compounded daily, and is held for 10 years. Assume 360 days in a year. (Round your answer to the nearest cent.)
Pt = Po(1+r)^n.
r = (2.8%/360) / 100% = 7.777*10^-5 =
Daily % rate expressed as a decimal.
n = 360comp./yr * 10yrs. = 3600 compounding periods.
Pt = 29,000(1.0000777)3600 = $38,370.35
I = Pt - Po = 38,370.35 - 29,000 = $9370.35.