Finance

compound interest earned in an account that opens with $28,000, earns 2.4% interest compounded daily, and is held for 10 years. Assume 360 days in a year

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  1. P = Po(1+r)^n.

    P = Principal after 10 years.

    Po = $28,000 = Inital deposit.

    r = (2.4%)/360) / 100% = 0.00006667. =
    Daily % rate expressed as a decimal.

    n = 360Comp/yr * 10yrs=3600 Compounding periods.

    Plug the above values into the given Eq
    and get:

    P = $35,594.69.

    I = P-Po =

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