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.)
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